Implied volatility comes from option prices and describes expected future movement. It does not tell you which direction the stock will move.
Lesson 11
What implied volatility is
Implied volatility is the market's expected size of price changes, worked out from option prices.
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Learn how to see expected movement in a price
Read two sample prices and see what implied volatility adds to them. Each of the four checkpoints ends with a two-answer question. Nothing places a trade.
CHECKPOINT 1 OF 4
Choose SOFI
0 / 4 checkpoints earned
When the chart loads, follow its highlighted control to earn your first checkpoint.
- Choose SOFI
- Read a buyer's price, upcoming
- Read a put buyer's price, upcoming
- Read a seller's price, upcoming
Loading the practice chart.
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