Intermediate Track

Historical Volatility vs. Implied Volatility

Historical volatility looks at what price has done in the past. Implied volatility is forward looking and often overstates the expected move. Learn more about the key differences between historical volatility and implied volatility.
Historical Volatility vs. Implied Volatility
Kirk Du Plessis
Apr 19, 2021

The difference between a stock's historical volatility and the implied volatility from options pricing creates our edge as traders because we have proved that options pricing is expensive (rich) long-term.

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Predicting the Market's Next Move
Most new (and experienced traders) use technical analysis to try and predict the stock market's next move. Our extensive backtesting research shows why that is so difficult.

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