Implied Volatility | Where Do I Start? Options Trading in 3 Minutes or Less

http://goo.gl/l87d5Q Tom uses Groupon options to show Case what implied volatility is and how to calculate the expected move of GRPN using implied volatility. ======== tastytrade.com ======== Follow Tom Sosnoff as he guides his daughter, Case Sosnoff, through the basics of options trading every day at 2:00pm CT on Where Do I Start? Only on the tastytrade network! What is tastytrade? Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Range for 100% is [0,10]. Range for 200% is [0,15].
   
   100% move is +/- 5. 200 is +/- 10 but since you can't go into negative prices it is [0,15].
2. Great - it explains volitity in a stock move!
3. Why is implied volatility taken from Feb option and applied to price of the stock (not price of the option)? If you take 87.66% IV for Jan option, you will get a different expected move of the stock in one year.