Why Does Implied Volatility Increase as Stock Prices Drop?
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 Published On Aug 28, 2017

When applied to the stock market, implied volatility generally increases when stocks sell off quickly, where investors believe prices will decline in short order. Implied volatility typically decreases when the market is bullish and complacent, where investors believe that prices will slowly rise over time. Learn more from Mike and tastylive about the tendencies of IV and the human impact on option prices.

0:00 Introduction
0:46 What is implied volatility?
4:22 What are some tendencies of IV?
6:26 Reasons for IV movement
10:49 Takeaways: Implied Volatility & Market Price Action
13:18 Questions/Contact info

#optionstrading #options #optionstrategy

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This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content are not, nor are they intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Supporting documentation for any claims, comparisons, statistics, or other technical data, if applicable, will be supplied upon request. Multi-leg option strategies incur higher transaction costs as they involve multiple commission charges. Please read the Characteristics and Risks of Standardized Options Disclosure prior to trading options. This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.

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