
Implied volatility indicates the market's expectation of future price movement
Image: Brendel, CC BY-SA 2.5, via Wikimedia Commons
Implied volatility indicates the market's expectation of future price movement
Volatility smile
Implied volatility varies with strike price, contradicting Black-Scholes
VIX
VIX measures 30-day S&P 500 volatility
dollar-cost averaging achieves
Dollar-cost averaging smooths out volatility by investing fixed amounts regularly
Beta (finance)
Beta measures a stock's volatility relative to the market
Vega
Vega is the fifth-brightest star in the night sky
Efficient-market hypothesis
Prices reflect all available information
Educational content, not financial advice.
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