Harnessing the Flux: Trading Volatility with Options

By Matthew Makowski Many investors shutter at the thought of volatility. But for day and swing traders, price swings are like fuel. And it’s not just short-term traders that can benefit. With a little know-how, it’s possible to supplement your income trading volatility with options.

Let’s start with the basics. When it comes to options, there are two types of volatility: historical and implied. Historical volatility is a measurement of how much the price of a given security has moved in the past. Implied volatility measures how big the price movements are expected to be in the future.
Implied volatility considers past price fluctuations as …read more



Did you enjoy this article? Join our FREE Newsletter!
I agree to have my personal information transfered to MailChimp ( more information )
Join over 100,000 investors and business leaders worldwide. Get the latest actionable business and investing intelligence before the rest of the crowd.
We hate spam. Your email address will not be sold or shared with anyone else.