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Expected move · Video · 52 sec
The day’s range in under a minute
How the options market draws a box around today’s price, and how IV Sigma puts it on your chart.
In this video
- Before the open, options already price how far the market may move today.
- IV Sigma turns that into levels: the anchor (yesterday’s close), ±0.5σ, ±1σ and ±2σ.
- Inside ±1σ is a normal day. A close outside it is a move the options market did not price in.
- The levels are a map, not a forecast of direction.