Learn About Extrinsic Value

This is a key to options trading! Find out why from our very own Mike Butler

Watch Now

Options Jive

Monday – Friday | 8:40 – 9:00a CT

Volatility vs Price

Options Jive

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Price returns are roughly normally distributed while volatility follows a chi-square distribution. The main differences between the two are the tails...price returns are skewed a bit to the downside, while volatility has a large, noticeable upward skew. This means if vol goes up, it tends to shoot up and float down, where as price can go up or down with the same velocity (for the most part).

Options Jive More installments

See All »

Latest tastytrade Videos As of October 26

Most Shared From the last 30 days