Studies have shown that implied volatility often overestimates actual volatility (realized volatility). This overstatement occurs because the market tends to factor in a cushion for potential adverse ...

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 ...

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.

Bitcoin ( BTC ), the largest cryptocurrency by market capitalization, hit a record-high above $109,000 on Monday, sending ...

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.

Historically, implied volatility has outperformed realized implied volatility in the markets. For this reason, we always sell implied volatility in order to give us a statistical edge in the markets.

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 ...

Implied volatility in EUR/USD and U.S. Treasury notes ... significantly higher than the 7-day realized or historical volatility of 41.4%. That indicates "a significant risk premium around the ...