Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options ( before investing.
One factor that impacts how market makers price options is volatility. This video, explores the CBOE Volatility Index known as the VIX, which is used by market makers and individual traders alike to measure volatility and make trading decisions. This video is part of our Trading Options course, Please open an account to access the full course.
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