Knowledge of volatility is important for all option traders, but what is it and how do traders use it? Implied volatility (IV) is a key component in the pricing of option contracts, and will therefore affect the profits (or losses) of any option trading strategy. In this recorded webinar, members of the Trading Strategy Desk discuss different types of volatility (historical vs. implied,) how it affects option prices, and how it can be used to plan and manage your trades.
In this course you will learn how to use the many options research tools available on Fidelity.com to generate and validate trading ideas.
In this course you'll learn how to use the robust options analysis tools available on the Active Trader Pro® to generate and validate trading ideas. You'll also learn how to use the option trading tickets to execute your single and multi-leg option trades.
Options at Fidelity
Options research helps identify potential option investments and trading ideas with easy access to pre-defined screens, analysis tools, and daily commentary from experts.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.
Greeks are mathematical calculations used to determine the effect of various factors on options.
Views expressed are as of the date indicated and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author, as applicable, and not necessarily those of Fidelity Investments.