HELP - Implied Move

Description

Implied Movement is an indicator to assess the price move expected by the market. Instead of using Implied Volatilityoptionslam.com defines its own calculation rules as illustrated below.

Implied Move Calculation

At optionslam.comwe use ATM straddle/strangles asking price to present expected movement of a stock.

For exampleStock A is at $39.75The 40 straddle is priced at $3.20.

Based on 40 straddlethe expected price movement range is from $33.80 to $43.20. Given the stock price is 39.75 and the straddle is 3.20 the Implied Move is 3.20 / 39.75 = .08 or 8%

8% will be the number used at optionslam.com to present the expected movement of the stock.

The IM (implied move) is a crucial piece of the puzzle when developing trade strategy and positioning. Go here for more information on the Implied Move Report.

How to access

EARNINGS TOOLS > Implied Price Move