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Open in appImplied vs Historical Volatility: Reading Market Moves
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This lesson looks at two volatility measures. Implied volatility (IV) is the market's forward-looking expectation, derived from option prices. Historical volatility (HV) measures how much the price has actually moved over a past period.
By comparing IV with HV, a trader can judge whether current expectations match past behaviour. The video then discusses approaches for buyers, who look at low IV to buy options cheaply, and for sellers, who look at high IV when premiums are elevated.
What you’ll learn
✓What implied volatility tells you
✓What historical volatility measures
✓Comparing IV with HV
✓Approaches for option buyers when IV is low
✓Approaches for option sellers when IV is high
Read and practise
SPEAKERAnkit Rawattrainer , Quantsapp
Seasoned derivatives expert with over 6 years of experience across equities, derivatives, and commodities markets. With a proven track record of successful trading and deep market insights.
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