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 ...

How to profit from an IV crush with options strategies Understanding IV (implied volatility) Crush is crucial for options traders because it is a key component of option pricing. In this article, we ...

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 ...

Implied volatility is the most important concept and tool in options trading. It gives you a simple metric to determine how expensive or how cheap an option is relative to other similar options. To ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J Catalano is a CFP and Registered ...

Here's how rising volatility helps turn positions into wins. It's no secret that stock volatility has jumped in recent months. This has occurred to an extent with most stocks, but some have seen much ...

Market participants' expectations, as reflected in implied volatility, maybe a more accurate reflection of future price movements than past price movements. When it comes to short-term moves, ...

J.P. Morgan analysts put together a list of stocks that have cheap implied volatility according to their scoring percentage. Bram Kaplan, head of Americas Equity Derivatives Strategy at J.P. Morgan, ...

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 ...

IV spikes hint at traders to anticipate an IV crush With the new year approaching, many traders are reassessing their strategies and preparing for market conditions ahead. While implied volatility (IV ...