{"id":536,"date":"2019-12-24T10:01:25","date_gmt":"2019-12-24T10:01:25","guid":{"rendered":"https:\/\/uat1.gettogetherfinance.com\/blog\/?p=536"},"modified":"2025-10-10T17:31:35","modified_gmt":"2025-10-10T12:01:35","slug":"implied-volatility","status":"publish","type":"post","link":"https:\/\/uat1.gettogetherfinance.com\/blog\/implied-volatility\/","title":{"rendered":"IMPLIED VOLATILITY \u2013 THE GAME CHANGER FOR OPTIONS PREMIUM"},"content":{"rendered":"\n
\"implied<\/figure>\n\n\n\n

If I say \u201cChange in implied volatility can have a greater impact on an option\u2019s premium than the effects of delta, gamma, theta <\/a>and rho combined\u201d Sounds surprising?
But it\u2019s true.<\/p>\n\n\n\n

Have you noticed some time we pay too much premium for an options<\/a> and sometime we get the same option with same strike considering same time left in expiry but still option\u2019s premium is low, this is just because of volatility.<\/p>\n\n\n\n

You may hear financial talking heads say, \u201cVolatility is high, so the market is going to bounce or the volatility is low, hence the market is due for a sell-off\u201d. Many might say that volatility sets where the market is going and bends its direction. However, volatility doesn\u2019t change the direction of the market, rather helps a trader opt the suitable and perfect trading strategy. There is also a saying that \u201cchange \u201cin IV can have a more significant impact on option\u2019s premium than options “Greeks\u201d. But how?<\/p>\n\n\n\n

Lost in the financial textbooks for years, the term \u201cVolatility\u201d has always been a crucial tool when it comes to trading, especially for options trading. There are several secrets of trading hidden within this crazy, old concept of IV that can change the way you see the options trading. Let\u2019s dive deeper in this concept:<\/p>\n\n\n\n

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