Expected move

The expected move is the size of move the options market is pricing for an event: add the at-the-money call and put premiums and divide by the stock price. ₹300 of premium on a ₹4,000 stock is 7.5%, and if you expect less, buy the stock, not the option. On results night it is the bar the stock has to clear.

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In the help centreSee how leverage and margin work on Mochatrade
  • IV crushIV crush is the drop in an option's price when the uncertainty it was charging for disappears, typically the morning…
  • Call optionA call option is the right to buy at the strike before expiry. Strike 24,200 and premium 80 means profit only above…
  • Implied volatilityImplied volatility is the volatility an option's price implies, worked backward from the premium: the market's priced…
  • Index futures (E-mini S&P 500)Index futures are futures on a stock index, like the E-mini S&P 500 on the CME. They trade almost round the clock, so…
  • Earnings season / earnings reportEarnings season is the weeks after each quarter ends when most US companies report, starting with the big banks around…
  • Guidance (earnings guidance)Guidance is a company's own forecast for the next quarter or year, given with results. The quarter was priced weeks…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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