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2. How implied volatility works with options trading

   www.aol.com/finance/implied-volatility-works...

   Many options chains such as those at the best brokers for options trading provide the implied volatility for each contract. Why is implied volatility important? Implied volatility is an important ...

3. 5 option strategies for advanced investors - AOL

   www.aol.com/finance/5-option-strategies-advanced...

   So it’s more useful for a stock that is experiencing falling volatility and is likely to remain near the middle strike, where profit is greatest. Example: Stock ABC trades for $20. A $17.50 call ...

4. Volatility (finance) - Wikipedia

   en.wikipedia.org/wiki/Volatility_(finance)

   CBOE Volatility Index (VIX) from December 1985 to May 2012 (daily closings) In finance, volatility (usually denoted by "σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices.

5. Volatility arbitrage - Wikipedia

   en.wikipedia.org/wiki/Volatility_arbitrage

   To an option trader engaging in volatility arbitrage, an option contract is a way to speculate in the volatility of the underlying rather than a directional bet on the underlying's price. If a trader buys options as part of a delta-neutral portfolio, he is said to be long volatility. If he sells options, he is said to be short volatility. So ...

6. Implied volatility - Wikipedia

   en.wikipedia.org/wiki/Implied_volatility

   If an option is held as part of a delta neutral portfolio (that is, a portfolio that is hedged against small moves in the underlying's price), then the next most important factor in determining the value of the option will be its implied volatility. Implied volatility is so important that options are often quoted in terms of volatility rather ...

7. The biggest risks of trading options: 7 key things to watch ...

   www.aol.com/finance/biggest-risks-trading...

   Conversely, option buyers want to buy when less volatility is baked into the option price, to get a better deal. So if a stock becomes less volatile, the option will decline in value to reflect ...