Category: Implied volatility
Implied volatility drop after earnings
The markets plunge - what does Vix tell us?
(small update: The Vix gave more than 30% and faster than we projected. If you took our idea it might be good time to take some profits off the table)
Indeed an historical event, an event that can...
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Edge of Skew Rank - Part 2
In the last article, Volatility Skew Rank – Part 1, we talked about what skew is. In this article, we will talk about ranking the volatility skew rank and its edge in the market.
Volatility Skew...
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The Edge of Implied Volatility Percentile
Implied volatility is one of the most important concepts in options trading. This is the measure most market players use to check if an option is expensive or cheap. In this post, we will be...
Trading Implied Volatility - Part 3
In this article, I wish to discuss the importance of volatility and implied volatility to options trading. The volatility of a stock is a measure of how "fast" it moves in each direction. If we say...
Trading Implied Volatility - Part 2
This is the second part of a four (very important) part post about how to better trade implied volatility. Most sources (educators, websites, etc.) give a lot of misinformation about trading...
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Trading Implied Volatility - Part 1 - Predicting stock movements
Predicting stock movements is the holy grail of investors, and many studies, tests, and systems have been developed and are being developed to do so. Four professors from Columbia, Georgetown, and...