what is implied return and volatility
Understanding Implied Volatility. In simple terms, implied volatility is the amount of stock price fluctuations. Being on the right side of implied volatility changes can enhance the chances of success. In general, implied volatility increases when the market is bearish and decreases when the market is bullish. This is due to the common belief that bearish markets are more risky than bullish markets. Consider selling strategies when options are being traded at high implied volatility levels.