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Beyond this exploration of WTI Crude Oil options plays, we're excited to bring you a series of educational ideas dedicated to all types of options strategies. More insights coming soon!
Introduction to Market Volatility
In the realm of commodity trading, WTI Crude Oil stands out for its susceptibility to rapid price changes, making market...
Amid serious pushback, Chicago Board of Options Exchange (CBOE) went live on 26th April 1973. Options are now a standard tool for portfolio risk management. Not so, back then. They were seen as gambling instruments for reckless speculators.
Shortly after CBOE launch, Fischer Black, Myron Scholes, and Robert Merton provided a mathematical model for computing...
Implied Volatility is the expected volatility of a given asset and can be used for ones advantage
De-Annualizing IV allows one to apply annualized IV and alter it towards ones desired time frame
As some may know, Implied Volatility or IV is an annualized figure, meaning we have to do extra work to get what we want
Applying IV
To gain a greater understanding...
Traders and investors use different sets of tools when approaching markets. Some are fundamentalists, pouring through balance sheets, supply and demand data, and other macro and microeconomic information to predict the future prices of assets. Others have a strictly technical approach to markets, following trends and the path of least resistance of prices. Still,...
In this video I address a question from a member of my social media. I wanted to answer this for them and educate others on why paying attention to Implied Volatility is important to your probability of success and your strategy returns if you are employing Premium Selling Strategies (Iron Condors, Credit Spreads, Straddles, Strangles, Butterflies, etc.)
Our indicator can now be used by everyone.
There are a lot of indicators trying to predict what will be the range of the stock in the future.
Some of the indicators, that are well known, are using STD of volatility like Bolinger Bands or using an advanced simulation like Monte-Carlo, and others that are using different methods.
Our approach to this subject is...
Hello traders,
Volatility is a measure of how quickly (the speed) the stock (but can be any security) moves up or down in price. Statistically, it is usually calculated as the standard deviation of stock prices over some time, usually annualized. This statistical measure is expressed as a percent. A stock that has a 90% volatility is more volatile than a stock...
