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Market Measures - August 12, 2025 - Expected Move Bias: How Far can Prices Go

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Manage episode 499798976 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
A market measure segment discussed expected move bias, examining how implied volatility compares to realized moves across different time frames. Data spanning 25 years revealed that 45-day options consistently show expected moves exceeding realized moves, explaining tastytrade's preference for this timeframe in their trading mechanics. The analysis showed 45-day options offer optimal balance between P&L potential and consistent volatility overstatement compared to shorter or longer-dated options, providing strategic advantages for traders seeking to maximize occurrences.
  continue reading

1744 episodes

Artwork
iconShare
 
Manage episode 499798976 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
A market measure segment discussed expected move bias, examining how implied volatility compares to realized moves across different time frames. Data spanning 25 years revealed that 45-day options consistently show expected moves exceeding realized moves, explaining tastytrade's preference for this timeframe in their trading mechanics. The analysis showed 45-day options offer optimal balance between P&L potential and consistent volatility overstatement compared to shorter or longer-dated options, providing strategic advantages for traders seeking to maximize occurrences.
  continue reading

1744 episodes

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