Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

As new traders flood the market, a return to the basics may help novices understand the fundamentals of options trading. Volatility, for example, refers to the propensity of a security's price to move ...

Volatility drag is one of the risks in investing. Volatility drag is a complex concept familiar to many sophisticated investors and financial professionals while relatively few ordinary investors have ...

One of the major factors that influences the price of an option is implied volatility (IV). In simplest terms, implied volatility is the anticipated movement of an underlying equity over a certain ...