Option Volatility: Introduction
By John Summa, CTA, PhD, Founder of OptionsNerd.com
Many beginning options traders never quite understand the serious implications that volatility can have for the options strategies they are considering.
Some of the blame for this lack of understanding can be put on the poorly written books on this topic, most of which offer options strategies boilerplate instead of any real insights into how markets actually work in relation to volatility. However, if you're ignoring volatility, you may only have yourself to blame for negative surprises.
In this tutorial, we'll show you how to incorporate the "what if" scenarios regarding changing volatility into your trading. Clearly, movements of the underlying price can work through Delta (the sensitivity of an option's price to changes in the underlying stock or futures contract) and impact the bottom line, but so can volatility changes. We'll also explore the option sensitivity Greek known as Vega, which can provide traders with a whole new world of potential opportunity.
Many traders, eager to get to the strategies that they believe will provide quick profits, look for an easy way to trade that does not involve too much thinking or research. But in fact, more thinking and less trading can often save a lot of unnecessary pain. That said, pain can also be a good motivator, if you know how to process the experiences productively. If you learn from your mistakes and losses, it can teach you how to win at the trading game.
This tutorial is a practical guide to understanding options volatility for the average option trader. This series provides all the essential elements for a solid understanding of both the risks and potential rewards related to option volatility that await the trader who is willing and able to put them to good use.(For background reading, see The ABCs Of Option Volatility.)

Volatility Arbitrage
Trading strategies that attempt to exploit differences between ... 
Implied Volatility  IV
The estimated volatility of a security's price. 
Volatility
1. A statistical measure of the dispersion of returns for a given ... 
Volatility Swap
A forward contract whose underlying is the volatility of a given ... 
TimeVarying Volatility
Fluctuations in volatility over time. Volatility is the standard ... 
VIX  CBOE Volatility Index
The ticker symbol for the Chicago Board Options Exchange (CBOE) ...

How does implied volatility impact the pricing of options?
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Is volatility a good thing or a bad thing from the investor's point of view, and ...
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What is an option's implied volatility and how is it calculated?
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What is the relationship between implied volatility and the volatility skew?
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Can delta be used to calculate price volatility of an option?
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If the stock market is so volatile, why would I want to put my money into it?
In this question, volatility refers to the upward and downward movement of price. The more prices fluctuate, the more volatile ... Read Answer >>