Glossary · Trading basics · S

Short volatility in plain English.

Positions that gain when the stock moves less than priced in and implied volatility falls — short straddles, strangles, iron condors and most premium selling.

Track

Trading basics

29 terms in this track

Taught in

Straddles and volatility: trading the size of the move

In the index

101 of 129

Filed under S

Connections

8

Related terms mapped below

01

The idea, in context

How to read the picture above and where the Academy teaches it.

Reading the illustration

Implied volatility sets the width of the bell: the shaded middle is the expected move, the tails are the rare big moves.

This definition usesImplied volatility (IV)Premium

In French: Vente de volatilité

Where it’s taught

Trading basics

Straddles and volatility: trading the size of the move

“Straddles and volatility: trading the size of the move” introduces this term with worked examples, a quiz and the trades around it. The Academy is part of the YieldCove membership.

02

8 terms around this one — the words its definition uses, its lesson siblings and the terms that build on it.

03

Where to go next

Understand it, try it with real numbers, then track it for free.

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