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You're thinking of options, not stock. Stock price itself can't imply volatility, it can only reflect market expectations of earnings.
by hueving 8y ago
You're thinking of options, not stock. Stock price itself can't imply volatility, it can only reflect market expectations of earnings.
- deleted 8y ago[deleted]
- throwawaymath 8y agoWhile implied volatility is a feature of derivatives (and by extension, options), the price of an equity does undergo volatility, particularly from the heightened trading activity in anticipation of e.g. earnings. Volatility is not restricted to the definition of implied volatility.