In “Know Your Options” I’ve written repeatedly about implied volatilities in options, generally with the intention of designing trades that allow us to purchase options that are relatively cheap and sell those that are relatively expensive, tipping the odds in our favor. I guess the world hasn’t been paying enough attention (not you, dear readers, but many others) because I continue to see and hear things in the news that misrepresent what “volatility” means in terms of the actual movement in stocks - or any traded asset - and the market prices of options contracts on those assets. Specifically, I’d love to put to ... (full story)