Relative Implied Volatility and Option Pricing
Posted on Thursday, December 16, 2021 at 10:29 AM
Dan Passarelli, CEO - Market Taker Mentoring
Relative implied volatility and option pricing are key to successful option trading strategies. When implied volatility is in the top half of the 6-month range, it's thought to be a high volatility scenario. That is one indication of over priced options, meaning it's better to sell options.
If implied volatility is in the bottom half of the 6-month range, that is a low volatility scenario. That's one indication of underpriced options, meaning it's better to buy options.
« Previous PostHistorical Volatility vs. Implied Volatility Next Post »What Does Implied Volatility REALLY Predict?
comments powered by Disqus
