Realized Volatility is a key financial metric that measures the historical price fluctuations of an asset, typically a stock, currency, or commodity, over a specific period. Unlike implied ...
While the implied volatility refers to the market's assessment of future volatility, the realized volatility measures what actually happened in the past. The measurement of the volatility depends ...
Bitcoin ( BTC ), the largest cryptocurrency by market capitalization, hit a record-high above $109,000 on Monday, sending ...
When the disconnect between implied volatility and realized stock movement is wide enough, option buyers can end up losing money on a trade, even if the shares are moving in the right direction.
For options traders, understanding volatility takes on a deeper meaning and relevance. That's because implied volatility (IV) is one of the primary factors that determines an option's price.
the spread between two-month 50-delta implied volatility and adjusted realized one-month volatility, the ratio of two-month over six-month 50-delta implied volatility, ratio of two-month 50-delta ...
"So you're getting a scenario set up here where implied vol[atility], or the cost of buying protection, has come in, yet at the same time, we've seen realized volatility move up," he explains.
Instead, realized volatility declined to the lower end of its recent range. The implied volatility term structure for BTC options remains steep, with longer-dated implied volatility hovering ...