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

Vaibhav Gandotra

10/3/20231 min read

green plant in clear glass vase
green plant in clear glass vase