Although coming up with an option value is complicated, typical valuation equations will take into account
the volatility of the particular stock (its propensity to go up and down in market price wildly), and the amount of time left in the options.
One way to establish
the volatility of a particular stock is to use beta.
Not exact matches
The
stock markets in general have experienced substantial
volatility that has often been unrelated to the operating performance
of particular companies.
While you have time to ride out market
volatility if you're young, you still want to be sure you're comfortable with the amount
of money you've invested in
particular stocks.
«This
particular index stood out in its ease
of use, but also that it needed no information — like
stock volume,
volatility or other terms — besides the single line
of data that it analyzes for unusual behavior.»
It measures a
stock's relative
volatility — that is, it shows how much the price
of a
particular stock jumps up and down compared with how much the
stock market as a whole jumps up and down.
In other words, investors can use single
stock futures in place
of stock to speculate or hedge against
volatility risk
of a
particular stock.
At the start
of the year,
volatility in the global economy and anticipation that the Fed would start raising rates weighed down the
stock market as a whole and REITs in
particular due to perceived interest rate risk.