Volatility revisited

Tastytrades's Best Practices on the 5/11/2015 show has a great show on many of the commonly asked questions about Implied Volatility.

I see it as a good primer on Volatility especially on the selling premium strategies.

Some of the questions include:

• What does Implied Volatility (IV) represent?

Index	IV
SPX	VIX
Nasdaq 100	XVN
Russell 2000	RVX
DOW	VXD
Gold	GVX
Oil	OVX
Euro	EVZ

• Q: What is the VIX and how is it calculated? 
• Shorthand for calculating shorter term moves on IV 

Short hand calculations to get estimations of shorter term moves:

Expected move of 30 DTE: IV / 3.5

Expected move of 60 DTE: IV / 2.5

Expected move of 90 DTE: IV / 2

• Q: What is the 19% rule we ofen talk about?

19.1% is the IV level that represents a 1% move for 1 day.

•  Q: What is IV Rank and why do we use it? 
• Q: How is IV rank calculated? 
• Q: Where can IV rank and IV be found on dough?