Options traders are pricing bigger swings than usual. The DVOL index reads 39.6, higher than 82% of readings over the last 90 days.
DVOL is a volatility index built from option prices. It measures how large a move the options market is paying for, not which direction that move takes. Over the 90 day window it ranged from 33.6 to 43.5, so this reading sits in the upper part of that span without reaching the top.
When the index is this high, both downside protection and upside bets cost more for anyone buying options.
DVOL is a volatility index built from option prices. It measures how large a move the options market is paying for, not which direction that move takes. Over the 90 day window it ranged from 33.6 to 43.5, so this reading sits in the upper part of that span without reaching the top.
When the index is this high, both downside protection and upside bets cost more for anyone buying options.
