3min chapter

Forward Guidance cover image

Options Trading for Macro Investors | Imran Lakha

Forward Guidance

CHAPTER

How to Determine the Volatility of an Asset

How do you determine what's the timeframe on something is volatile? I'll give you an example. Let's say, let's say GameStop, it goes down back to $4. So that looks like it's not that volatile. But of course, if you measure it on a daily basis or an intra hour basis, it's a lot more volatile. What we have as options traders is, obviously the implied volatility is talking about the future. We don't know what's gonna happen in the future, but what we do have is the past. So what we can measure is historic volatility. And what we typically do is we look at the daily changes in the market,. And we

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