Ask the Institute

Ask the Institute Archive

DATE: November 4, 2013

QUESTION:

How would an investor research whether historical volatility or implied volatility is "high" or "low"?

ANSWER:
In dynamic markets, every trader should have an understanding of the markets historical volatility and implied volatility to accurately adjust strategies and positions throughout the trading day. At CBOE.com there is a free options analysis tool available from IVolatility.com called the IV Index which provides an analysis of the "highs" and "lows" of historical volatility and implied volatility over the past year. To learn more about how to research historical volatility and implied volatility, view this segment of "Ask the Institute."

  VIX Snapshot

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