Volatility Quote Trading
A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices. Investopedia Says:
Used mainly by sophisticated investors, volatility quotes benefit those investors who trade upon volatility rather than price. These investors are typically interested in the likelihood of a contract moving up or down in price rather than in its actual cost. Related Terms:
Ask
Bid
Futures Contract
Implied Volatility
Option
Volatility |