6 lessons about 21 minutes 12 quick checks final check: 8 questions Free, no sign-up
The number inside every option price — implied, realized, and how to compare them.
Your progress0/6 lessons
By the end you will be able to
- Explain what implied volatility measures and scale an annual figure to a shorter horizon.
- Compare implied with realized volatility, and IV rank with IV percentile.
- Read skew across strikes and the term structure across expirations.
- Explain what the VIX measures and what it does not.
Options Band · Course completion record
Volatility
completed all 6 lessons and passed the final check
A record of self-study kept in this browser. It is not an accreditation, licence or qualification.
Syllabus
work through in order; each lesson ends with a short check- ✓ Implied volatility (IV)The market's consensus estimate of how much a stock will move, extracted from option prices. 3 min
- ✓ Historical (realized) volatilityHow much a stock has actually moved, measured from past daily closes and annualized for comparison with implied volatility. 3 min
- ✓ IV rank and IV percentileTwo ways to judge whether a stock's current implied volatility is high or low relative to context. 3 min
- ✓ Volatility skew and smileWhy options at different strikes on the same stock trade at different implied volatilities. 3 min
- ✓ The IV term structureHow implied volatility differs across expiration dates, and what the shape of the curve reflects. 3 min
- ✓ The VIXCboe's 30-day implied volatility index for the S&P 500, and what its level does and does not mean. 3 min
- ★ Final check8 questions · pass mark 6/8 · unlocks when every lesson check is done 4 min
Your progress is saved in this browser only; clearing site data resets it. Educational content only: nothing in these courses tells you what to trade. Time estimates assume about 200 words a minute.