Options Jive - February 12, 2021 - Expected Move the Easy Way

Published: Feb. 12, 2021, 2:34 p.m.

The simplified expected move formula allows for traders to easily calculate the market’s expectation for a particular stock to move a certain amount over any number of days with 68% certainty. 

Remember, option prices/IV are the drivers of expected move, so when IV of a stock changes, so will the expected move over every timeframe.