Options Education

OIC402W: Implied Volatility & Profit/Loss

Webcast Objective:

Learn about the concepts of implied volatility as it relates to historical and expected volatility.

Discover how implied volatility can affect the profit and loss of your options positions. Gain a better understanding about how changing implied volatility's effect on options prices can be quantified through the concept of Vega, one of the Greeks.

You'll also be introduced to the generally-expected behavior of implied volatility in today's market and how to prepare yourself to take advantage of its changing levels.

Who Should Take This Webcast:

Advanced students

Webcast Duration:

18 Minutes

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Webcast Description:

OIC Instructor Alan Grigoletto of BOX discusses implied volatility as it relates to historical and expected volatility.

Discover how implied volatility can affect the profit and loss of your options positions. Gain a better understanding about how changing implied volatility's effect on options prices can be quantified through the concept of Vega, one of the Greeks.

You'll also be introduced to the generally-expected behavior of implied volatility in today's market and how to prepare yourself to take advantage of its changing levels.

Webcast Outline:

  1. Implied Volatility and Profit vs. Loss
  2. Presentation Outline
  3. Volatility Review
  4. Historical and Expected Volatility
  5. Implied Volatility
  6. Effects of Changing Volatility
  7. Volatility as Expected Variance in Underlying Stock Price
  8. Measuring Changes in Implied Volatility
  9. Vega (aka kappa or omega)
  10. Vega Example
  11. Effect of Vega
  12. Implied Volatility and the Option Marketplace
  13. See the Future?
  14. Rules of Thumb
  15. Implied Volatility More than Variance?
  16. Implied Volatility and Your Position
  17. Implied Volatility and Your Forecast
  18. Long and Short Options Hypothetical Examples
  19. Long Call
  20. Covered Call
  21. Volatility Plays Profiting Simply from Changing Implied Volatility
  22. Increasing Implied Volatility
  23. Decreasing Implied Volatility
  24. Conclusion
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