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MI206: Options, Derivatives, & Volatility w/ Kevin Davitt

The Intrinsic Value Podcast - The Investor’s Podcast Network

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How Does Volatility Relate to the Options Market?

How does the options market tie end to all this volatility? Vix, volco? It's a really good question. They're inextricably connected. But let's understand the how and why, because that's where learning happens. There are five inputs to the value of any index option; we know nearly all of them. We can back out what volatility is being implied by an option's value using an options pricing formula riotlike excels amazing.

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