Category: Implied volatility
A 101 Beginner's Guide to Implied Volatility (IV) [Implications for Options Traders]
You may or may not be a seasoned options trader, but the concept of implied volatility (or "IV") is essential to understand. Implied volatility measures the market's expectations for price...
Understanding What Is an IV Crush and Its Implications for Options Traders
There are few certainties in the life of an option trader, but the fact that the implied volatility of an option will regularly crush after a major event linked to the company is among these. If...
IV in Options: The Role of Implied Volatility in Options Trading
Unravel the complexities of IV in options trading with our comprehensive guide. We delve into what IV is, its impact on high and low IV options, and how to interpret IV rank. Whether you're a...
IV Percentile and What is Implied Volatility Rank?
IV percentile is one of the most important measures in options trading. It is also the most commonly used feature in Options Samurai options scanner. This article will discuss the Importance of the...
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What is Expected Value and 3 ways to use it
In the realm of trading strategies, Expected Value (EV) is a statistical measure that seeks to predict the potential profitability of a particular strategy, given certain market conditions. By...
Implied Volatility backtest pt 3: IV and RV
In the past two parts, we saw that IV and RV are both mean-reverting. We also saw that we could use the edge generated from this mean-reverting behavior in our trading when we measure them using...
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Volatility Skew Rank - Part 1
This will be the first in a series of articles that dive into the advanced applications of implied volatility. You can read the first series of articles about IV in the implied volatility category...
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Implied Volatility Backtest 2: Predicting RV Change
This is a multiple-article series. In part one, Implied Volatility backtest – Predicting IV Change, we discussed how the IV percentile predicts future IV change. In this article, we will test how...
Implied Volatility backtest - Predicting IV Change
[We have just added another article in the series, about the Real Volatility (or Historical Volatility) backtest. Check it at Implied Volatility Backtest 2: Predicting RV Change]
We've often...
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Difference between IV Rank & IV Percentile
In the OptionSamurai Scanner, we use IV Percentile to compare the IV of different stocks and call it “IV rank” as we think it is more intuitive to understand. We know that other market players...