Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

When trading stocks or stock options, there are certain indicators you may use to track price momentum. Implied volatility, which measures how likely a security’s price is to change, can be useful for ...

Ever since the seminal contributions of Bruno Dupire (1994) and Emanuel Derman and Iraj Kani (1994), who independently developed a discrete-time binomial tree version of the same result, it has been ...

After Black Monday in 1987, options implied volatilities started to display a ‘smile’ in relation to different strike prices, which models at the time could not capture. In 1994, two solutions were ...

Volatility trading is different from other types of trading, yet it can be a profitable form of playing the stock market for those interested in pursuing it. Everyday trading tends to focus on the ...

The crypto world's hallmark is its notorious volatility, where prices can wildly swing in short timeframes. For traders, not just navigating but capitalizing on this volatility is a linchpin of ...

Beta measures stock volatility relative to the S&P 500 index. Low-beta stocks offer less volatility; high-beta stocks suggest more. Using beta aids in assessing portfolio risk and crafting investment ...