Volatility A measure of risk based on the standard deviation of investment fund performance over 3 years.
Volatility is a variable that appears in option pricing formulas.
In the option pricing formula, it denotes the volatility of the underlying asset return from now to the expiration of the option. A highly volatile market means that prices have huge swings in very short-periods of time. Vomiting from the Volatility - how options can help soothe the upset stomach. Investor's Corner - Rising volatility can be beat with discipline.