Implied-Volatility.com

Volatity Trading and Financial Website

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Volatility Cones

The first tool available is the Volatility Cone.  You'll find a link to the cones under the "financial" menu at the top of this page.

First, you select a ticker symbol.  Then you choose to display the cone for Historical, Parkinson, Garman-Klass, Rogers-Satchell, or Yang-Zang volatility.  You can select a time frame of 20, 40, 60, 120 or 240 days.

The chart then displays the 5th, 25th, 50th, 75th and 95th percentile of the selected volatility type.  The current volatility is displayed over the cone.  The points were there the current volatility is beyond the 5th or 95th percentile indicate unusual circumstances, and therefore potential trading opportunities.

Welcome

Hi there! , welcome to implied-volatility.com, the volatility trading and financial website.

The goal of this website is to provide quantitative analysis for trading options and stocks.  We want to provide you with free tools for trading the market.  The website provides Quantitative Analysis more so than an fundamental approach. 

These tools are the tools institutions and hedge funds employ.  Implied-volatility.com will bring professional investing tools to you for free

To start, will we explore volatility trading.  A basic definition of Volatility trading is identifying stocks that have a high volatility or implied volatility when compared to historical levels.  As investors, we then seek to profit as volatility returns to historical levels.  One very simple example would be selling options for these stocks.  Implied volatility is a component in option pricing.  If it is high, then the option price is high.  The option price will drop as volatility drops.