The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on March 4. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings ex...
We take the underlying stock price, the break even point (target price), the days to expiration, and the 52-week historical volatility, and then use those figures in this formula. Depending on the strategy, we use the above or below probability (i.e., the probability the price crosses th...
Max loss takes place if the stock price is equal to or between the two short options at expiration. Imp Vol - The average implied volatility (IV) of the nearest monthly options contract. IV is a forward looking prediction of the likelihood of price change of the underlying asset, with a ...