Member Avatar for Jakes12345

Hello everyone!!
This place is whole new for me and doesn't know exactly how the things will operated here, so please bare with me. Implied volatility is the term i have familiar a bit but don't know about why it's used to analyze the market industry data. Can i somehow understand about everything about it in detail.

SNIP

Thanks a million for any responses.

Edited by happygeek because: spam snipped
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Member Avatar for AndreRet

What Does Implied Volatility - IV Mean?
The estimated volatility of a security's price. In general, implied volatility increases when the market is bearish and decreases when the market is bullish. This is due to the common belief that bearish markets are more risky than bullish markets.

Implied volatility is sometimes referred to as "vols."
Investopedia explains Implied Volatility - IV
In addition to known factors such as market price, interest rate, expiration date, and strike price, implied volatility is used in calculating an option's premium. IV can be derived from a model such as the Black-Scholes Model.

It basically boils down to read the market BEFORE any serious decisions or moves are made. If you can establish that there is a depression coming soon because of your analysis, you will obviously put plans in place to protect you against any damage or losses.

Member Avatar for AndreRet

Also, have a look at this link which covers all the relations to the term.

Member Avatar for AndreRet

I am not that versed in the subject, just a little bit I learned through the years.:)

As far as software is concerned, there is a few models out there to determine your companies "What If's" situations. Have a look at this link with some links to software.

I think this site is what you are looking for. They cover most of the basics...

I hope this helped. As I said, I'm not that versed on the subject.

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