Implied Volatility Explained | Options Trading Concept

When calculating the price range over the calendar days, do you use the STOCK price or the STRIKE price of a particular option?

One of the best video’s explaining the IV theory - a beautiful way to combine the math with reality trade impact.

Thank you so much for a very simple and clear explanation on implied volatility and option price! ❤❤❤

Chris. I've watched loads of videos trying to explain what IV is to people new to options, but this is the best yet by far. If you haven't done statistics at high school don't worry, just remember these basic formulae and you're home and dry!

Great explanation to this concept

Great breakdown!

Okay. Great explanation, easily understood. So what do I do with that info?

I don't understand where the 68% figure comes from

You are the man, Chris!💯💯💯

Thank! I appreciate the lesson.

So so so helpful, thank you very much!

Thank you!!! Where is a good place to find a stock's implied volatility?

This video helped so much!!! Thank you

Very informative and understandable. Thank You

"You don't need to understand the math behind it" Dude, im looking at Implied Volatility math + explaining. Why no math :(

FANTASTIC VIDEO

On trading platforms is IV one of the Greeks. I am not seeing it anywhere where purchasing options

why divide by 365 and not 252? I've never seen it divided by 365

I'm extremely glad and grateful as I was able to recover my money after being scammed of $9800 from fraudsters. All thanks goes to the name above 👍.you can reach him anytime. He’s certified and verified ✅💯.

I'm extremely glad and grateful as I was able to recover my money after being scammed of $9800 from fraudsters. All thanks goes to the name above 👍.you can reach him anytime. He’s certified and verified ✅💯.

If the VIX goes up, does the implied volatility of a stock always go up as well?

Great job bro

Thank you for this video. I can understand volatility well than reading by myself. Really appreciate it.

okay, So someone's gonna need to walk me into this. If every contract has a unique IV, then by that, only IVs less than 100% can provide standard deviations to the downside that don't bankrupt a company. IV on the downside higher than 100% gives less info and is arguably useless.

intro is too loud

Thanks jonny for this sinn

Thats jonny

Hi Chris!

A little clarification

I heard you say this twice in your other videos: option prices drive implied volatility.
I got a little confused. So I dug around a little and

Is it not the other way around? Don't people pay more/less for an option if they feel the stock is more/less volatile?

This one is gold

Your formulas are off, IV give the value for the magnitude of the changes share price, not the share price itself.

Happy to dig up for the formula, it’s lognormal since it is the solution to the BS model.

What if the IV is over 100%?

So basically my AMC calls today were going up in premium when the stock price was going down because, people were willing to pay more for them?

Great video

Thanks for this great video. Still curious about one thing though. Where does square root come from when calculating price range for arbitrary time frames? I was thinking a root mean square situation or from the standard deviation formula. Thanks

This is by far the most complete yet straight to the point, simple and practical explanation among the many I have watched.

Is there a roughly ideal IV for selling the wheel? In other words, the best balance of premium earned relative to the risk of a big move that might put the share price too far away from where I can sell the next call?

Excellent video….the order in which you covered topics tracked perfectly with where my brain wanted to go next…..the questions that popped up in my head. Thanks!

Can someone please explain is it option price that sets IV number or vice versa?

Great info, thanks!

Brilliant video! Great, clear, concise examples and explanations! Thank you

Great Vid!

You are awesome!

I want to understand the math though. How is it calculated?

This is great. I added these formulas right into my excel spreadsheets so I can do a quick check of where the stocks might go.

Thanks a lot...!
Very greatful for all the videos and your efforts...!

Good explanation! Just wondering why you use +/-1.68 for 1 standard deviation instead of +/- 1.65 as the z table shown? Thx