Lesson on Implied Volatility.
$WMT 220107 143.00P$
Stocks like $Futu Holdings Ltd (FUTU.US)$ or $Tesla (TSLA.US)$ or $AMC Entertainment (AMC.US)$ with super high implied volatility (IV) over 100% might see a put option rise 10% in value when the underlying stock moves 1.89%. But when it’s got extremely low IV like less than 20%, stocks like $Kinder Morgan (KMI.US)$ it’s a completely different story.
$Walmart (WMT.US)$ option moved 280% on a less than 2% underlying stock move.
Stocks like $Futu Holdings Ltd (FUTU.US)$ or $Tesla (TSLA.US)$ or $AMC Entertainment (AMC.US)$ with super high implied volatility (IV) over 100% might see a put option rise 10% in value when the underlying stock moves 1.89%. But when it’s got extremely low IV like less than 20%, stocks like $Kinder Morgan (KMI.US)$ it’s a completely different story.
$Walmart (WMT.US)$ option moved 280% on a less than 2% underlying stock move.
And if a low IV stock like $Caterpillar (CAT.US)$ moves 5% or $JPMorgan (JPM.US)$ moves 3% like today, lookout
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
I block accounts with no name, pic, trading history or posts that try to follow me. Sorry hedges
1646Followers
220Following
10KVisitors
Follow
MuscMoo : thanks for the lesson mike. I get all my education from random motivated people on moomoo