Everything You Wanted to Know About Equity Options but Were Too Frightened to Ask.
IBKR Podcasts
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How Does Implied Volatility Work?
implied volatility is a really dynamic feature of how options are priced, and it moves all the time. Theoretically speaking, it's really a function, again, of just supply and demand. One option can trade many different implied volatility levels during the day,. During one day, during one minute, it can. And so the price of the option and way its printing is what is actually determining what that implied volatility level is.
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