It refers to the estimated future volatility of the underlying asset through a future (expiration) date.
Leaving the fancy options mumbo jumbo to the side, it's just another way options traders think about the price of an option .
It is because inputting volatility solves for price, or inputting price solves for volatility, that options traders tend to think of the two interchangeably.
Big move expected for Foot Locker In the table below, we highlight some of the stocks reporting this week where options prices estimate fairly high moves around earnings.
And how does one play it given that Foot Locker options are incredibly expensive?
Persons:
Foot, Locker
Organizations:
Big, Nike
Locations:
it's