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Episode 151 (Yiddish): The Importance of Implied Volatility (IV) Explained Simply
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In this week’s video, I break down Implied Volatility (IV) and why it’s such an important concept in options trading. I explain what IV means, how it affects option prices, and why traders pay close attention to it. Everything is explained in simple, easy-to-understand terms so you can see how IV plays a role in your trading decisions.
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Transcript
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The hidden force behind every option
price.
This is the mention
and was mentioned and unfortunately most
mention options. I have no clue how it
works and what it is. And this is the
direct
Push it to push the gambling
implied volatility
options trading
traders can avoid
the implied volatility
of stocks with the own of options with
the
decisions and when it's used credit when
it's used debit
This isility
options
845 5721212
volatility
any broker options chain
blinked number
is implied volatility.
So
is implied volatility implied volatility
IV
implied volatility but basically invar
implied volatility is the measurement
is expected for the
move in the future.
The expected move is
high implied volatility.
Vend low implied volatility mind the
market expect
sideways price action. Okay
master
of the situation in the market. The
market massive massive moves.
This is IV
market.
I high
numbers
report
inflation reports
interest rate the Fed raising rates the
Fed lower rates the Fed blah
for the market. Wow.
Fleet bombers.
Trump announced
the market. market expect.
So I got the temperature in the market
in the market
but
Yes.
Anything in the options market
is
effects for option prices
and puts
cheaper options. So
option isn't
I
announce
the market.
The market is stable. The market
earnings.
Tesla announced earnings.
So
movement
announce
for the next quarter. The options is
expensive.
Okay.
The IV, the excitement, the emotions
crash. So
the value
option
announced earnings
IV
collapse.
And by the way,
earnings
earnings.
neutral strategy.
for
earnings.
Ivolved
in the options market. Number one, high
IV environment.
IB environment
is a high IV environment
is a high IV environment.
IV environment.
as the as the IV
credit spreads, um, iron condors in a
low IV environment is buyers
in a high IV environment.
environment
premiums.
So
directioning
students
market
Foreign
speech. Foreign speech. Foreign speech.
vis
the IV implied volatility IV IV is the
shortcut for implied volatility
IV and is the IV compared to the IV
IV is% but IV rank is non
the IV is relative to the IV so
IV is
relative compar
The IV rank
in the IV is yet 40. This mind
as yet is the IV
options market. The IV rank is the IV
rank. So the broker
think
the IV rank is
the trading options.
based
and ask any questions
options market.com/block
email of the options market.
[Music]