Implied Volatility

Capiche? The Downside of Selling Time September 30, 2019 10:15 AM   |  

Theta can indicate many things but you can only depend on it after you have closed your trade.

3 min read  |  thinkMoney Magazine
Trading Earnings Announcements the Smart Way? Know Your Options June 26, 2019 2:31 PM   |  

Trading a stock around earnings day isn’t always simple. There tends to be volatility risk. It also helps to really know the company’s fundamentals.

5 min read  |  Advanced Options Strategies
Looking for a Potential Edge? Options Stats, Pre-Sliced and Diced on thinkorswim May 29, 2019 4:00 AM   |  

Explore options statistics on thinkorswim—implied & historical vol and percentiles, the Sizzle Index, and the put/call ratio. Learn how options stats can help traders and investors make more informed decisions.

5 min read  |  Options Trading Basics
Collar Options Strategy: Collaring Your Stock for a Temporary Measure of Protection May 23, 2019 3:00 PM   |  

Learn how a collar strategy—a covered call and a protective put—might be a way to manage stock risk.

4 min read  |  Advanced Options Strategies
Trading Earnings? Get Earnings Analysis on thinkorswim in a Single Snapshot May 9, 2019 4:00 AM   |  

thinkorswim has developed an interface dedicated to researching the effects that earnings announcements have on the prices of stocks and options.

4 min read  |  thinkorswim Platform
Options Straddle Strategies & Earnings Events: What Are the Risks? April 26, 2019 12:44 PM   |  

Can straddles be used in an options strategy around earnings announcements or other market-moving events? Yes, but there are risks and other considerations.

3 min read  |  Advanced Options Strategies
Singing the Low-Volatility Blues? Try Calendar Spreads April 15, 2019 4:00 AM   |  

Learn how a long calendar spread can be effective in a low-volatility trading environment.

4 min read  |  Advanced Options Strategies
Going Vertical: Using the Risk Profile Tool for Complex Options Spreads March 28, 2019 4:00 AM   |  

Once you’ve learned to use the Risk Profile tool on the thinkorswim® platform for single-leg options, you may wish to use it for more complex trades.

3 min read  |  Advanced Options Strategies
Iron Condor Strategies: A Way to Spread Your Options Trading Wings March 25, 2019 4:00 AM   |  

Vertical spreads are fairly versatile when making a directional stance. But what if you're stuck in a range-bound market? Consider the iron condor.

3 min read  |  Advanced Options Strategies
Using the Put/Call Ratio to Gauge Stock Market Sentiment March 19, 2019 4:00 AM   |  

Learn how the put/call ratio is calculated and how to use the P/C ratio as an indicator of stock market sentiment.

6 min read  |  Technical Analysis
The Exciting World of Trading Treasury Bonds (Seriously) February 27, 2019 4:00 AM   |  

Treasury bonds are boring, right? Wrong. For traders, they represent a market that can be bigger than stocks.

11 min read  |  Futures
Lost at Sea? The Risk Profile Tool Can Be Your Message in a Bottle January 16, 2019 4:00 AM   |  

Options trading involves risk, but these risks can be analyzed, monitored, and simulated with the thinkorswim® Risk Profile tool.

4 min read  |  thinkorswim Platform
Implied Volatility: Spotting High Vol and Aligning Your Options December 26, 2018 4:01 AM   |  

Learn the difference between implied and historical volatility, and find out how to align your options trading strategy with the right volatility exposure.

3 min read  |  Advanced Options Strategies
Same Building Blocks, Different Products: Options on Futures Intro September 26, 2018 4:00 AM   |  

Learn the differences between equity options and options on futures contracts, and how experienced options traders can use futures options to enhance their trading.

4 min read  |  Futures
VIX Futures, VIX Options, and VVIX: Casting a Wide Volatility Net August 28, 2018 4:00 AM   |  

Learn how the VIX, VIX futures, VIX options and the VVIX work together to help traders increase market awareness and make more informed option trading decisions.

7 min read  |  Futures
Currency Volatility World Tour: Foreign Exchange (Forex) Volatility August 2, 2018 4:00 AM   |  

Learn about the dynamics of foreign exchange volatility, and where to find currency volatility data.

3 min read  |  Forex
Options Volatility Q&A: VIX, Skew, and the Rule of 16 July 25, 2018 4:00 AM   |  

Do you follow the VIX as a volatility measure? Ever heard of the rule of 16? How about volatility skew? Learn how to apply these concepts to options trading.

2 min read  |  Options Trading Basics
Trading Earnings Season? Brush Up on Your Option Greeks July 3, 2018 4:00 AM   |  

The sensitivity of option prices to changes in time, volatility, and the price of the underlying are commonly referred to as “Greeks.” As you prepare for earnings season, here's an overview.

5 min read  |  Options Trading Basics
Earnings: Volatility’s Siren Song—Save Yourself From Surprises April 23, 2018 12:00 AM   |  

Implied volatility usually increases ahead of earnings announcements and then drops after the news release. If you know implied volatility is going to drop after earnings reports, here are three options trading strategies you could trade.

8 min read  |  thinkMoney Magazine
Wearing a Collar? Here’s How and When You Might Adjust It December 27, 2017 11:00 PM   |  

Learn how adjusting a collar strategy—a covered call with a protective put—can help you manage stock risk.

3 min read  |  Advanced Options Strategies
Turn a Long Butterfly Spread into a Credit Spread? Break a Wing December 20, 2017 11:00 PM   |  

Learn how to turn a long butterfly spread—typically initiated with a debit—into a credit spread by adjusting one of the wings, aka a “broken wing butterfly.”

5 min read  |  Advanced Options Strategies
Derivatives With a Twist: Options on Futures vs. Equity Options December 6, 2017 11:00 PM   |  

Options on futures are quite similar to their equity option cousins, but a few differences do exist.

6 min read  |  Advanced Options Strategies
Options and Calendar Spread Decision Time: Close It or Roll It? November 29, 2017 11:00 PM   |  

As the front-month leg of a calendar options spread approaches expiration, a decision must be made: close the spread or roll it.

4 min read  |  Advanced Options Strategies
Double Calendars: The Low Volatility Trade with Two Peaks November 5, 2017 11:00 PM   |  

Are you an option looking for a strategy designed for a lower-volatility environment?

3 min read  |  Advanced Options Strategies
On Any Given Friday: An Introduction to Weekly Options October 19, 2017 12:00 AM   |  

Learn how weekly stock options can help you target your exposure to market events such as earnings releases or economic events.

3 min read  |  Options Trading Basics
Confidence Boost: Tools to Help Hone Your Options Strategy October 12, 2017 12:00 AM   |  

Learn how three trading tools and services can help newcomers and veterans alike with trade selection and risk management.

2 min read  |  thinkorswim Platform
Volanthology World Tour: Foreign Exchange Volatility October 5, 2017 12:00 AM   |  

Learn about the dynamics of foreign exchange volatility, and where to find currency volatility data.

3 min read  |  Forex
Scalping the Gamma: Dynamic Hedging of Option Positions September 28, 2017 12:00 AM   |  

Learn how to dynamically hedge changes in an option position’s delta in a process known as “gamma scalping.”

5 min read  |  Advanced Options Strategies
Market Maker Move: A Handy Way to Monitor Possible Price Fluctuations September 21, 2017 12:00 AM   |  

Find market maker moves when researching trades with earnings announcements. Just use this handy TD Ameritrade thinkorswim® trading platform tool.

3 min read  |  thinkorswim Platform
Gamma Scalping Intro: Synthetics, Put-Call Parity and Delta-Neutral September 21, 2017 12:00 AM   |  

Some option traders dynamically hedge positions, but doing so requires a basic understanding of synthetic positions and put-call parity.

3 min read  |  Advanced Options Strategies
Volanthology: A Tour of VIX and Other Volatility Indexes September 15, 2017 12:00 AM   |  

Learn about the VIX and other volatility indexes and how some investors use them to assess potential risk.

4 min read  |  Options Trading Basics
Price Action vs. Price Erosion: The Positive Side of Negative Theta September 7, 2017 12:00 AM   |  

Learn about gamma, which some traders consider the positive side of negative theta.

5 min read  |  Options Trading Basics
Got a Directional View? Here’s an Option Spread to Consider August 31, 2017 12:00 AM   |  

Learn how to structure a trade designed for uncapped profit potential.

6 min read  |  Advanced Options Strategies
Term Structure and Covered Calls in a Low-Volatility Environment August 17, 2017 12:00 AM   |  

When stuck in a low-volatility environment, check out the term structure. You might consider alternative covered call strategies.

3 min read  |  Advanced Options Strategies
Going on Strike: Consider Widths when Buying Vertical Spreads August 3, 2017 12:00 AM   |  

If you have a directional view on a stock price, buying a vertical spread might be for you. But deciding on strikes and strike widths requires some thought.

3 min read  |  Advanced Options Strategies
Black Swans: Part of the Wall Street Menagerie of Bulls and Bears July 31, 2017 12:00 AM   |  

Learn about “black swan” events and how you can attempt to protect yourself and your portfolio from adverse shocks.

4 min read  |  Portfolio Strategy
Proportional Proposal: An Intro to Put Ratio Options Spreads July 27, 2017 12:00 AM   |  

Learn the basics of put ratio spreads and how they can help you pursue your objectives.

4 min read  |  Advanced Options Strategies
Three Clicks From Data to Trade: Economic Indicators July 24, 2017 12:00 AM   |  

Some economic indicators create more noise than others—learn to create trading strategies based on how markets might react to economic data.

7 min read  |  Fundamental Analysis
Are You Missing the Forest for the Trades? July 24, 2017 12:00 AM   |  

Instead of hyper-focusing on one position at a time, look at your entire portfolio and try to figure out a better hedge—here's some tools and tweaks to help.

8 min read  |  Advanced Options Strategies
Piloting Your Options Strategy? Remember the Pre-Flight Checklist July 20, 2017 12:00 AM   |  

Learn how to assemble and follow an options trading checklist.

3 min read  |  Options Trading Basics
Calendar Spreads: Options Strategy for the Dog Days of Summer July 13, 2017 12:00 AM   |  

Looking for opportunities amid a low volatility trading environment? Learn about calendar spreads.

4 min read  |  Advanced Options Strategies
Swim Lessons: Trading Options During Earnings Season July 6, 2017 12:00 AM   |  

Learn some of the option trading alternatives you can use during earnings season.

5 min read  |  Advanced Options Strategies
Swim Lessons: Collaring Your Stock for a Measure of Protection June 29, 2017 12:00 AM   |  

Learn how a collar strategy—a covered call and a protective put—might be a cost-effective way to manage stock risk.

4 min read  |  Advanced Options Strategies
Early Assignment? Don't Let Dividend Risk Derail Your Options Strategy May 25, 2017 12:00 AM   |  

Learn about dividend risk, which options might be candidates for early exercise, and how you can potentially prepare for it.

5 min read  |  Options Trading Basics
Swim Lessons: Option Melting and Theta Decay Strategies May 18, 2017 12:00 AM   |  

An option's value tends to decay as expiration approaches. Learn how to incorporate time decay ("theta") into a trading strategy.

4 min read  |  Options Trading Basics
Swim Lessons: Asking ‘What If?’ With the Theoretical Price Tool May 4, 2017 12:00 AM   |  

Learn how to stress test an options position by assessing changes in theoretical value under changes in volatility, time and price of the underlying.

4 min read  |  thinkorswim Platform
Swim Lessons: Brush Up On Your Greeks This Earnings Season April 20, 2017 4:00 AM   |  

The sensitivity of option prices to changes in time, volatility, and the price of the underlying are commonly referred to as “Greeks.” Here is an overview of

5 min read  |  Options Trading Basics
Markets Aren’t Normal and Neither Are You April 17, 2017 12:00 AM   |  

How using Kurtosis to study abnormal market behavior—in particular how it explains the price behavior of options—can aid in your strategy selection.

8 min read  |  Advanced Options Strategies
Looking for a Soft Landing? Try an Iron Condor to Trade Earnings April 13, 2017 12:00 AM   |  

Learn how an trading an iron condor can be an effective options strategy during earnings season.

3 min read  |  Advanced Options Strategies
What I Learned Not To Do: Direction, Time, and Volatility January 8, 2017 11:00 PM   |  

Managing risk variables you didn’t know you could control—lessons learned in 2016 about direction, time, and vol, and what mistakes to avoid this year.

10 min read  |  Options Trading Basics
Pairs Trading: Your Yummy New Snack January 8, 2017 11:00 PM   |  

In a low-vol environment, pairs trades may offer unexpected opportunities. Here's how to choose among many combinations of bullish and bearish positions.

8 min read  |  Advanced Options Strategies
Weekly Options: Stretch Them Out September 28, 2016 12:00 AM   |  

Learn how to increase the flexibility of your existing options strategies with weeklys: options that move quickly and live for about a week.

7 min read  |  Advanced Options Strategies
Covered Calls in the Fast Lane: Ladder Price, Volatility, and Time September 28, 2016 12:00 AM   |  

Laddering price, volatility, and time can take covered calls to a new level—look to collect more premium and diversify across vol and time.

8 min read  |  Advanced Options Strategies
Trading Strategies: How To Trade Presidents September 28, 2016 12:00 AM   |  

The market doesn't care who becomes president, and savvy traders don’t care about predictions—just results. Prepare yourself for either scenario.

6 min read  |  Fundamental Analysis
Can Long Call Options Substitute for Stock? Getting In the Money July 25, 2016 12:00 AM   |  

Stocks can be expensive, no doubt, but that doesn’t necessarily mean you can’t participate in rallies. Learn how call options can act as a substitute for stoc

4 min read  |  Options Trading Basics
Volatility Rules, Not Size: It’s Not Price, But Vol That Counts July 5, 2016 12:00 AM   |  

Why trading in high-priced stocks may be no riskier than their low-priced brethren, and how to calculate that risk with implied volatility.

5 min read  |  Advanced Options Strategies
Volatility Tips: When High Tide Is the New Low Tide July 5, 2016 12:00 AM   |  

When trying to select the right option strategies, which do you choose? Looking to IV percentiles for clues to VIX levels may help.

3 min read  |  thinkorswim Platform
Volatility and the Risk of Options Skew in Calendar Spreads June 22, 2016 12:00 AM   |  

Zero skew, or even negative skew, can be favorable. Once skew starts rising, options traders might want to think twice before entering a calendar spread.

2 min read  |  Advanced Options Strategies
Volatility Update: How Low Can VIX Go? Historical and Implied Vol May 12, 2016 2:00 AM   |  

Periods of low volatility can last months and even years. When it happens, it has important implications for investment and options strategies.

4 min read  |  Options Trading Basics
Trading Volatility: Insights From Professional Traders April 21, 2016 12:01 AM   |  

When discussing the markets, there’s a common question among investors and traders: What’s your position?

3 min read  |  Options Trading Basics
Is Market Volatility Really All That Bad? January 27, 2016 6:00 AM   |  

For most traders, fear and uncertainty are primary factors that drive volatility in markets higher and lower.

4 min read  |  Trading Basics
Option Strategy: Slay Volatility with Weekly Double Calendars September 8, 2015 8:01 PM   |  

Expand option market learning to weekly double calendars. They can increase in profitability if implied volatility rises.

3 min read  |  Advanced Options Strategies
Rolling: The Art and Science of Extending a Trade's Duration August 2, 2015 8:00 PM   |  

Explore rolling options “losers” to extend duration for covered calls, naked calls or puts, one side of a short strangle, and select other trades.

3 min read  |  Advanced Options Strategies
Choosing Credit Spreads vs. Debit Spreads: Let Volatility Decide July 15, 2015 8:00 PM   |  

Align your option vertical spread with the level and direction of implied volatility to position your trade for success.

2 min read  |  Advanced Options Strategies
Trading Vertigo: How to Trade Pricey Stocks with Ratio Spreads July 1, 2015 7:30 PM   |  

The six-year-old rally has produced monster stocks. How do you get involved when the altitude makes your stomach quiver? Ratio spreads might be the answer.

7 min read  |  Advanced Options Strategies
All the Right Option Moves: Take the Improv Out of Earnings June 10, 2015 8:00 PM   |  

Consider straddle/strangle swaps to better position for earnings. Use option strategies and charting tools to help navigate these vexing volatility events.

5 min read  |  Options Trading Basics
Size Up Option Straddles for a Reading on Earnings Volatility May 20, 2015 8:00 PM   |  

Check out short-term options pricing to gain a sense of how the underlying stock could move around an earnings release. You can track straddles or use the TD

3 min read  |  Options Trading Basics
Exploring Options: An Introduction to Multipliers April 9, 2015 9:50 AM   |  

Traders often think of options in small denominations because that’s how the bid/ask quotes appear. But beginning investors in particular must remember to use a 100x multiplier to help determine correct position sizes.

2 min read  |  Options Trading Basics
Cool Scripts: Bollinger Band-ing Volatility October 14, 2014 8:00 PM   |  

Learn how to create a thinkScript in thinkorswim by TD Ameritrade using Bollinger Bands to generate possible trading signals

3 min read  |  Technical Analysis
Trading Momentum Without a Chart April 1, 2014 5:07 PM   |  

Picking months and strikes are big decisions for options traders. Do probabilities matter? We think so.

8 min read  |  thinkorswim Platform
How Your Trading Platform Can Help with Math: Stats on Stats November 12, 2013 8:31 PM   |  

thinkorswim platform’s ® Today’s Options Statistics divvies up the market by call and put volume, delta values, historical volatility, and more.

2 min read  |  thinkorswim Platform
Viewing Option Volatility through a Few Different Lenses October 1, 2013 4:54 PM   |  

Volatility has become easy shorthand for trading talk. But just below the surface, volatility can be confusing. Yet, when you look at it through different lenses, a few basic truths start to clear things up.

7 min read  |  Advanced Options Strategies
Market Maker Move: A Coiled Spring Indicator for Traders July 1, 2013 5:38 PM   |  

If you like to trade earnings and swing for the fences, you need to check out the feature in thinkorswim® that can clue you into potential moves.

2 min read  |  thinkorswim Platform
Overcoming Fear: Selling Naked Puts with Your Pants On July 1, 2013 5:36 PM   |  

The first step to overcoming any fear is understanding what you're dealing with. With short-naked puts, that means understanding the strategy and the risks.

2 min read  |  Trading Psychology
Trading Earnings Announcements without Getting Skewed July 1, 2013 5:19 PM   |  

Trading earnings announcements can be a fool's game. When volatility is high, trends can break after a company announces. Consider a few volatility tricks.

10 min read  |  Advanced Options Strategies
Money Walks, Options Talk: Analyzing Option Prices January 1, 2013 4:30 PM   |  

Option prices can speak louder about the state of a stock than most analysts. You just have to listen and understand what they're trying to say.

8 min read  |  Options Trading Basics
Markets Move. Get Over It. An Options Volatility Primer July 1, 2011 4:50 PM   |  

Without stock and options volatility, there are no trading opportunities. So to revere it rather than fear it–you need just need to “get it.”

13 min read  |  Advanced Options Strategies
Weeklys: Trading Short-Term Options in the Red Zone January 1, 2011 8:18 AM   |  

A guide to weeklys: Volume is swelling, and traders are using weekly options to speculate on very short-term moves, or simply as a hedge.

7 min read  |  Advanced Options Strategies
Not Your Daddy's Diversification: Hedging Risk Like a Trader January 1, 2011 6:34 AM   |  

Diversification approaches for active traders to hedge non-systematic risk across spreads, including directional risk and time and vol.

7 min read  |  Advanced Options Strategies
Collars, Conversions, & Clarity: Limit Risk without Compromise October 1, 2010 7:16 PM   |  

If you own stock, and don’t want out, there are ways to protect yourself and still profit on upswings. When looking to make a few bucks sans stock, go simple.

7 min read  |  Advanced Options Strategies
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