Trading Justice
In this episode of the podcast Matt brings on Tyler Craig from Tackle Trading to discuss why implied volatility matters to options traders.

There are the six inputs to the pricing model:

  • Stock price
  • Strike price
  • Time to expiration
  • Volatility
  • Dividends
  • Interest Rates

Five of the six variables are known. The sixth is unknown. It is an educated guess or estimate, usually based on past performance. Can you guess which one it is?

The answer is volatility.

1:40 Market Skyline

28:50 Implied Volatility

Direct download: Trading_Justice_471_Implied_Volatility.m4a
Category:general -- posted at: 3:02pm MDT

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