Phrases with «option volatility»

"Option volatility" refers to the level of uncertainty or fluctuation in the price of an option. It reflects the potential for the option's value to change rapidly due to various factors such as market conditions, time remaining until expiration, and the underlying asset's price movements. Higher option volatility indicates a greater chance of significant price swings, while lower volatility implies more stability. Full definition

Related phrases

Sentences with «option volatility»

  • If option volatility is really high, why wouldn't we want to enjoy the benefits of selling some option premium? (oldprof.typepad.com)
  • When writing out - of - the - money calls, the premium received from a call sale can rise exponentially with an increase in overall option volatility. (horizonsetfs.com)
  • Yield spreads lag behind option volatility even though the two should be closely related. (alephblog.com)
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