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