How Does Volatility Change Options Prices
Broken Pie Chart · Broken Pie Chart
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Show Notes
Often, we get questions on why one company's options are priced so differently than another. So how options prices differ based on implied volatility? What makes up intrinsic value vs extrinsic value in options premium? Compare a high volatility company to a lower volatility company in the options market. How to calculate expected single standard deviation expected move based on IV Implied Volatility
Implied Volatility
Volatility
Intrinsic Value
Extrinsic Value
Time value in premium
LEAP Options
How Days to Expiration Inform Option Prices
Gamestop Options vs 3M Options
Mentioned in this Episode:
Podcast High Probability Options Strategies https://open.spotify.com/episode/5r05EHn8TBaJFCwGT7J8WN
Derek Moore book Broken Pie Chart https://amzn.to/2RUP4sy