What is Options Volatility?
Options volatility is simply a term that describes the degree of risk associated with a given investment option. The amount of volatility present with the investment in question is usually determined by taking into consideration key factors that make it possible to adequately project the future performance of the investment. By making an informed projection on future performance, investors can decide of the degree of risk or volatility involved is worth the amount of return that can reasonably be expected from the option. In general, options volatility seeks to define the potential for change in the value of a stock or other option. Ideally, it indicates that there is a good chance the option will increase in value within a given period of time, assuming certain factors either remain constant or are introduced in the near future. A movement of this type would indicate the degree of risk associated with the option would be worth the investment when weighed against the total amount of th
