【30 Days' Implied Volatility】Description

TigerFeatures
2022-04-18

1.What is 30 Days' Implied Volatility

We use all options in the option chain to calculate the 30-days' implied volatility. It means a stock's implied volatility in the next 30 days. Also, we calculate IV/HisV and IV percentile to help to compare whether today's IV is high or low.

2.How to use

There're many strategies to use 30 Days' IV. For example, before the earnings report, the 30 Days' IV is high and IV percentile is 100.0, which means IV is at a record high compared with the past year. The market is pricing a volatile movement on the stock and making option prices fluctuate.

On the other hand, after the earnings report, IV tends to fall to mean value, causing option prices to plummet. So we can also use the straddle strategy to profit from IV change.

If a stock's IV is higher than another, does it mean the stock's option is more expensive?

For example, TWTR's IV is higher than C's. Does it mean we can short TWTR's IV and long C's? The answer is NO. Different stocks have different IV ranges, stocks in the technology industry tend to have higher IV, so we should compare their IV percentile. They have the same IV percentile, indicating they are all at the same IV level.

3.Feature Navigation

Stock detail page - Option - Analysis

Talk with Tiger PM
Share your product feedback, ideas, and experiences with TigerPM here, and we will respond as soon as possible.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • RedpillBluep
    2022-04-19
    RedpillBluep
    Interesting information! Thanks for sharing! Appreciated.  [Like]
  • ensemble
    2022-04-19
    ensemble
    Great knowledge. thanks
  • Asphen
    2022-04-19
    Asphen
    good one. iv crush helps option sellers.
  • FK1234
    2022-04-21
    FK1234
    💪
  • Smart74
    2022-04-19
    Smart74
    Good
  • CubMom
    2022-04-19
    CubMom
    Noted
Leave a comment
6