GameStop’s implied volatility (IV) is through the roof. Near-the-money options expiring Friday have an IV near 400%. In comparison, the same options on Tesla stock have about a 60% IV. What is IV? It’s a complicated mathematical formula that basically tells you how volatile the option market is expecting the underlying stock to behave. GameStop’s IV is very high because traders know it could spike 100% in a couple of days or plummet 50%, which it has done several times over the last couple of months.
GameStop IV Above 400% - What's the Trade?
GameStop IV Above 400% - What's the Trade?
GameStop IV Above 400% - What's the Trade?
GameStop’s implied volatility (IV) is through the roof. Near-the-money options expiring Friday have an IV near 400%. In comparison, the same options on Tesla stock have about a 60% IV. What is IV? It’s a complicated mathematical formula that basically tells you how volatile the option market is expecting the underlying stock to behave. GameStop’s IV is very high because traders know it could spike 100% in a couple of days or plummet 50%, which it has done several times over the last couple of months.