Glossary/ Options
Options
Implied volatility
The volatility the market is currently pricing into an option. Not a forecast — a price, and one that can move against you while the underlying stays still.
Where this comes up
Lessons that use the term in context, which is usually more useful than the definition on its own.
- Gaps, and what fills them — Empty space on a chart, and the three kinds of it.
- Vega and implied volatility — The part that moves your option when price does not.
Nearby terms
Strike · Theta · Time value · Underlying · Vega · Breakeven