How Does Volatility Change Options Prices

Broken Pie Chart

English - June 27, 2021 15:38 - 30 minutes - 42.1 MB - ★★★★★ - 16 ratings
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Often, we get questions on why one company’s options are priced so differently than another. So how options prices differ based on implied volatility? What makes up intrinsic value vs extrinsic value in options premium? Compare a high volatility company to a lower volatility company in the options market. How to calculate expected single standard deviation expected move based on IV Implied Volatility

Implied Volatility

Volatility

Intrinsic Value

Extrinsic Value

Time value in premium

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Mentioned in this Episode:

Podcast High Probability Options Strategies https://open.spotify.com/episode/5r05EHn8TBaJFCwGT7J8WN

Derek Moore book Broken Pie Chart https://amzn.to/2RUP4sy