Pricing & Volatility
Without a doubt we get our "edge" as options traders by mastering options pricing and volatility. Specifically the fact that long-term implied volatility always overstates the expected market move.
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Understanding the Math

The "math" behind your trading system is directly related to your success rate and profitability. Learn to understand the math behind options trading with this lesson on standard deviation, probabilities, and statistics.
Understanding the Math
Kirk Du Plessis
Apr 19, 2021

Welcome back to statistics class. Undoubtedly more important that understanding the Black Scholes model for pricing (which we purposesly don't cover) is your ability to understand statistics and probabilities on a deep level. We would even venture to say that your understanding of the "math" behind our trading system is directly related to your success rate and end of the year profit. If you don't get the math behind the trades you will fail - guaranteed! Swallow your pride and head back to school with us as we talk in depth about standard deviations, probabilities and statistics in this advanced tutorial.

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IV vs. IV Percentile
Understanding the difference between a stock's actual implied volatility and IV percentile is one of the keys to your success as an options trader.

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