Navigating the Volatility Maze: Deciphering VIX and Crafting Winning Strategies

What is implied volatility? The expected magnitude of a stock’s future price change is implied by the stock’s option prices. Shown in the below table are two stocks’ option prices for exact same date to expiration and comparable stock prices. The ‘UNP’ share has higher option prices and thus higher implied volatility than ‘PEP’ stock