What exactly does “implied volatility” mean and how can traders use it to their advantage?
Implied Volatility
darrell
#2
Implied Means - Expected Volatility Means - Movement
It is expected move built into option pricing based on time to expiration, news events, average volatility etc…
We extract IV from options and use it to calculate our Diagnostic Deviation levels to calculate expected movement
And we use it for the choppy market warning for entry filters and trailing stops.