The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “What does low volatility mean?” You might have heard this before, whether we say it or somebody else says it online, but this idea of low volatility is a relative term in my opinion. Low volatility generally means a lower level of overall market volatility than we might traditionally see in a high volatility market or extreme market. Now, most of the time, most stocks and most indexes and markets experience a lot of low volatility which means that stocks are generally moving in a fairly compressed or tight range. That doesn't necessarily mean that stocks can’t have large moves, but most of those moves are kind of muted. We see very small up-days or very small down-days. There’s not too much going on. Now, this would be in comparison to a high volatility market where you’re seeing lots of volatility not only on the intraday price, but also on the daily moves in the market. Rec