Once you learn the basic terminology of options trading - like strike, premium, and in the money - you'll know enough to place some trades on your own. Next, it's time to starting making some real ...

Option buyers should be wary when implied volatility appears to be running much higher than historical Today we are taking a closer look at volatility -- specifically, what it means when there is an ...

CVI is an algorithm for constructing implied volatility surfaces that is framed as a convex optimisation problem. As such, it is suitable to be processed by modern optimisation solvers like CVXPY, ...

A volatility crush is the term used to describe the result of implied volatility exploding once the market opens higher or lower than where it closed the previous day. For new investors, implied ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is ...

John Summa is the founder of OptionsNerd.com and has authored a number of books. He has 6+ years as a chief economist and derivatives strategist. Gordon Scott has been an active investor and technical ...

Volatility influences options prices because dramatic price swings amplify gains and losses. While traders can’t look at a crystal ball to see how much volatility the market will endure, implied ...

Implied volatility is a powerful but often misunderstood metric that plays a major role in options trading. Implied volatility doesn’t tell you what’s going to happen to an option’s price, but it ...