Tag: MarketExpectations

Introduction: Implied Volatility (IV) is the forecast of a stock’s potential to experience price changes. This estimation plays a pivotal role in the world of options trading, particularly in the strategic selection of strike prices. A keen understanding of IV can arm traders with valuable insights, allowing them to assess risk more accurately and choose strike prices that align with their market expectations and risk tolerance. The Essence of Implied Volatility: Implied Volatility represents the market's prediction of a security's price movement and is derived from the price of options. A higher...