Tag Archives: Implied Volatility

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Facebook Earnings Preview

Facebook (FB) will report quarterly earnings after the close today and a great deal of media attention is focused on the event, with bulls pointing to mobile monetization and ‘key growth initiatives’ and bears suggesting the rapid share-price appreciation may indicate a potential bubble to be avoided (or even shorted!) Options flow provides an interesting […]

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Volatility Arbitrage

For option traders it is vital to know how implied volatility (IV) affects the price of an option. Many times traders get frustrated about losing in a position when they were directionally correct about the expected move. The price of an option is derived from several inputs into a robust pricing model such as Black-Scholes. […]