Volatility

Normalized Volatility Risk Premium (NVRP) is a quantitative way traders can identify discrepancies between Implied Volatility and Realized Volatility to find trading opportunities.

Choosing the best options strategy is a process of elimination, not selection. Learn why you have to eliminate strategies that don't work so you can focus on the strategies that give you the best opportunity for success.

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.

As options traders, our edge in the market comes from exploiting mispriced option premiums. Implied volatility often overstates the actual range of a stock which creates an opportunity for option sellers..

One of the ways we gain an "edge" in the market selling options is because IV tends to overstate the actual expected move of a stock.

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.

Market on close orders enable you to exit trades at the fair market price when the market is closing. There are pros and cons to using market on close orders.

Limit on close orders enable you to exit trades for a specific price at the end of the trading day. There are pros and cons to using limit on close orders.

The VIX index calculates future volatility based on put and call option pricing in the S&P 500. Learn more about the VIX.