Implied volatility is a critical concept in the world of options trading. It reflects the market's expectations of future price movements in a stock. When options have high levels of implied ...
The S&P 500 options market is currently reflecting heightened short-term anxiety, as seen through a rare condition known as backwardation in the implied volatility term structure. In this state, ...
Looking at some of Schaeffer's commonly used options indicators At Schaeffer’s, we use a variety of indicators in our writing to describe stock and trader behavior. While some of these terms may seem ...
The volatility term structure, which plots implied volatility against different expiration dates for options on the same underlying asset, can reveal when potential catalysts are anticipated by ...
Implied volatilities fell across asset classes last week despite renewed trade headlines as investors largely shrugged off the new tariff threats. Among international equities, Brazil was the only ...
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 ...
“A simple mean reversion model can provide effective signals for option strategies even when trading costs are included,” she says. In a study released on Monday, Commerzbank shows that prior to the ...
Bitcoin’s BTC $87,954.75 implied volatility (IV) gauge has climbed to a 2.5-month high, consistent with the seasonal trends. Volmex's bitcoin implied volatility index, BVIV, which represents the ...
If you ask most investors how risky corporate bonds are compared to government bonds, or to compare emerging market stocks vs. domestic stocks, you’ll find that most investors have a sense of the ...
These represent elevated volatility levels compared to baseline implied volatility, suggesting that traders are pricing in potential market-moving catalysts. For example, for Monday the market expects ...