How Pros Use This Number to Win 70% of Trades - Expected Move Explained | Market Measures
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 Published On Aug 16, 2023

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📝 Description
Expected move is the estimated dollar move of the underlying price for a given options expiration date with 68% certainty. It is calculated using expiration pricing and implied volatility. While the accuracy is about 70%, the expected move is considered statistically significant and useful for traders. The formula for calculating expected move is explained, and examples are provided to illustrate its relationship with price, implied volatility, and duration. Expected move is a valuable tool for traders to gauge potential price movement.

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