Mike Whiteboard Trading Volatility Options

Mike whiteboard trading volatility options

Implied volatility refers to the implied price movement of an underlying over a one year period of time.

Mike breaks down implied volatility today, and explains why it's an important concept to understand.

He discusses volatility in general and how life & car insurance can play a role in insurance premium due to speculation of tail events.

Implied Volatility: Historic vs. Implied - Options Trading Concepts

He explains that is essentially how implied volatility is viewed in the option world as well.

He discusses how implied volatility has mean reverting properties, which is why we utilize it as one of our core strategic indicators.

Tune in for a great explanation!