When trading stocks or stock options, there are certain indicators you may use to track price momentum. Implied volatility, which measures how likely a security’s price is to change, can be useful for ...

Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

Implied volatility is a powerful but often misunderstood metric that plays a major role in options trading. Implied volatility doesn’t tell you what’s going to happen to an option’s price, but it ...

Implied volatility is arguably the most important factor for options trading. This week, we discuss how to interpret implied volatility. We also show why you should not use implied volatility as an ...

Rates quants need no introduction to the stochastic alpha, beta, rho (SABR) model. Widely used to price European swaptions, the model has a useful expansion that allows users to calibrate it to the ...

With the rise in volatility within markets, it is important to understand what implied volatility is and how it can be used as a tool when it comes to trading. According to the CFA institute, implied ...

The BGM model is a special version of the Libor market model (LMM), in which all forward rates are lognormal. While the LMM is a very flexible framework as it enables us to specify an individual ...

As an options trader, I am always on the lookout for potential earnings plays. One stock that caught my attention is CrowdStrike, due to a significant difference in implied volatility of options for ...

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 ...

Implied volatility percentile (IVP) is a crucial metric in the world of options trading. Delve into the intricacies of IVP, its calculation and interpretation, and see how it compares to other ...