What is volatility in the stock market?

In you're trading or investing, you will often hear people say that a stock or the market is volatile. But have you ever wondered what volatility actually means. More importantly, volatility affects options prices. Having an understanding of what volatility is, how to calculate it and how to interpret it will go a long way in helping you trade better.
When talking about volatility, you'll hear about India VIX or the volatility index. In this video, Karthik explains all these aspects.
We'd also recommend checking out the Varsity chapters on volatility: zerodha.com/va...
As you learn all these aspects about trading, you can put your stock market knowledge to the test, taking the Varsity Certification exam: zerodha.com/va...
#volatility #vixindex #volatilestocks #impliedvolatility #tradingstrategies #tradersofindia #stockmarketindia #financialmarkets #zerodha #zerodhachallenge #stockstowatch

[@pankajarora8083]

Sir, you have changed my life. I have not met you but you are my best teacher

[@varsitybyzerodha]

[@rajaasam]

for me too, I had studied varsity and got the right path to approach the market, thanks

[@henrymitchell9717]

To be kinda blunt, I'm giving up on investing in stocks..... I put between 4000 to 5000 a month and it's nothing but down down down..... Sooooo frustrating, and I only invest in boring big companies

[@karthikg1987]

You are such an awesome teacher. By luck i reached to this video after binging on more than 50 chapters in varsity in the past 3-4 days :) thanks a ton! Sir! God bless You!

[@GururajBN]

You have brought back the memories of statistics studied half heartedly during the college days! Good and informative video.👍

[@naik19862003]

Sir... After my grandfather... U are the best teacher I have come across... Your writing in training modules is so clear it feels like you are teaching right in front of me... Keep up the great work of educating people like us...

[@nandkishorkulkarni3082]

Carefully and perfectly chosen words .... I was anxious to hear the last 68% remark ... it has just sealed it .... 👌👌

[@1983toka]

Just loved your video..... exactly what I was looking for 😊

[@impushprajyadav]

Sir ek hi to Dil hai kitni baar jitoge ❤️

[@timshen8310]

explain quite well about volatility Trading in stock market, well done

[@akgymnastics7153]

Thank you for sharing

[@nikhil11vtx]

Super duper fantabulous revision on Volatility.

[@jamesartemus8020]

Could you do a video on how calculate volatility and what does it mean?

[@sanjaygopakumar]

Thank you for this super informative video. 🇮🇳

[@vishwajeetvaze3380]

Why u r soo good at this sir ♥️

[@sauravbhattacharyya5435]

An excellent video lesson, though very brief, should've been more elaborate with worked out examples, particularly when you jump from Stock Volatility to Options IV. Also, the figure 352 is a bit confusing since there are around 220 working days in NSE. Anyway, thanks a lot for this excellent lesson.

[@Dr.SantanuPal]

Very nicely explained…thank a lot

[@pradeepkumardadhich2620]

Simply superb

[@samitkar2875]

❤good

[@prasadphad9700]

im just beginner and trying to understand option trading, i have been using your module 5 and it helped me a lot to understand basics. I was reading volatility chapter (17.4 ) and im so confused about the range as on page no 144 (15.3) we calculated range by just volatility ,but in 17.4 (page no 163)we are calculating range by avg+/- volatility , My question is why the upper range is not 8337+(16.5%*8337) or lower range 8337-(16.5%*8337)

[@biswarupmohanty5292]

great explanation karthik. thank you

[@suwarnadeshmukh9224]

Very nice explanation and really like the way of teaching. It's really helpful. Like and subscribed.

[@kaarthiknatarajan4994]

Thanks for this wonderful content

[@mrigankanath3791]

Thank you very much

[@rimabiswas1759]

Thank u..

[@GaneshThore]

Great learning as always

[@riteshkumarsoni5796]

Implied volatility and forcasted volatility is same or different?

[@aadarwankhade4874]

Sir please tell me square root of time, how 252 comes explain.

[@sangramgaikwad25]

Background music should be lower for the video. Your voice is good enough to get focused on Topic.

[@varsitybyzerodha]

Understood, Sangram. We'll work on it.

[@vaibhavgudlani2833]

Is this produced in learn app background?

[@dorairajk]

Excellent and simply explained. If possible, please also cover making use of IV Percentile/IV Rank in your next video

[@varsitybyzerodha]

Noted, Dorairaj. Thanks for the feedback :)

[@jackr6727]

India VIX is for the next 30 days or 1 year? I am confused. You have mentioned both in your video

[@nikhil11vtx]

30 days…1 year is slip of tongue !

[@rajaasam]

Great Video sir, but What is IV Rank and IV percentile

[@varsitybyzerodha]

Hi Rajaa, you can check this chapter on Varsity. Please do drop in your queries in the comments: zerodha.com/varsity/chapter/volatility-applications/

[@rajaasam]

@@varsitybyzerodha thank for sharing sir

[@technoschamparni4033]

There's any video for technical analysis

[@varsitybyzerodha]

We have a complete playlist: kzbin.info/www/bejne/r6u1gWCjdpeYn6c

[@medisettinagababu6824]

another thersitical explanation need.

[@deepakpal4572]

Sir how did you consider the time value as 252 ?

[@marcusbelanger3489]

252 is the typical number of trading days in a year.

[@subikumar7352]

Is there Any Volatility index for Forex?

[@varsitybyzerodha]

Hey Subi, no, there isn't.

[@prithvinalawade8329]

Stock prices are non stationary therefore calculating volatility over complete data isn't relevant.

[@shivamrodhiya8494]

After watching this video, i have become more confused about volatility