Traders can profit handsomely through options and the volatility of their prices, but great skill is required in this strategy


Volatility is a statistical measure of the tendency of a market price or yield to vary over time. Put simply it is the relative rate at which the price of a security moves up and down’. Volatility is found by calculating the annualised standard deviation of the daily change in price.

It is one of the most important elements in evaluating an option, because it is usually the only valuation variable not known with certainty in advance.

An objective measure
Implied volatility is a subjective measure

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here