V. 21:7 (53): Explore Your Options by Tom Gentile

V. 21:7 (53): Explore Your Options by Tom Gentile
Item# \V21\C07\147EXPL.PDF
Availability: In Stock

Product Description

Explore Your Options by Tom Gentile


What exactly is volatility and how is it used to trade options? — S.L.

Volatility is simply the rate of change in a stock, index, or futures contract over a specific period of time. There are two types that we are concerned with when trading options: historical and implied. When speaking of the movement of the stock as it has occurred in the past, we’re referring to historical volatility. After using a fairly complex formula to calculate historical volatility, we can use the result to “guesstimate” where a stock should end up over the same period of time. Implied volatility is the market’s assumption of where the stock is going in the future, reflected (or implied) in its option price.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order