research
·
Apr 6, 2026
·
15 min read
Implied Volatility in Options Trading: What It Actually Is (and What It Isn't)
Your options lost money because you treated implied volatility as a forecast. Everyone does at some point. You saw IV at 50% and assumed the market expected a 50% annualized move. You bought calls or puts, the direction was right, and the position still bled. IV dropped, vega worked against
Read article →