Implied Volatility For Option Spreads

Implied volatility is an essential piece of my option spread trading strategy. Some traders mistakenly believe that volatility is based on a directional trend in the stock price. By definition, volatility is simply the amount the stock prices fluctuate, without regard for direction. Get the Implied Volatility Indicator here!: https://www.stockchartstrading.com/iv Get alerts, Indicators, and tons of free learning at: https://www.stockchartstrading.com There are two forms of volatility to consider: historical and implied. Implied volatility isn't based on historical pricing data on the stock; it's what the marketplace is "implying" the volatility of the stock will be in the future. In Meet the Greeks, you'll learn about "vega", which can help you calculate how much option prices are expected to change when implied volatility changes. Implied volatility is expressed as a percentage of the stock price, indicating a one standard deviation move over the course of a year. For those of you who snoozed through Statistics 101, a stock should end up within 1 standard deviation of its original price 68% of the time during the upcoming 12 months. #impliedvolatility #impliedvolatilitytradingstrategies