The implied volatility of an option contract is an estimation of contracts volatility based on the current trading price. The more expensive the option, the higher the implied volatility. Implied volatility gives the trader a sense if the contract is relatively cheap or expensive.
The bid price is the most competitive price for a stock or an option at which a buyer is willing to purchase the asset. Conversely, this is the price that the stock or option may be sold at when a market order is used. [click to read more]
CBOE, which stands for Chicago Board Options Exchange, is the original exchange that traded stock options on a national level. CBOE was founded in 1973. They are also the world's largest options exchange and a market leader in creating financial instruments for electronic trading. [click to read more]
The expiry of stock options, index future's options and index futures. The markets see very high volumes on these dates and used to be on third Friday in the months of March, June, September, and December before 2001. After 2001, Triple Witching was replaced by Quadru[click to read more]