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Glossary · Events

Expected move

The size of move the options market is pricing for a stock by a given date.

Why it matters

It turns option prices into a plain range: roughly two thirds of the time the stock should finish inside it.

How to read it

Expected move ≈ price × implied volatility × √(days ÷ 365). Around earnings, the options market prices a bigger move.

Related

Implied volatilityThe yearly volatility that today’s option prices imply. Higher IV means pricier options.Earnings reportThe quarterly results a public company must publish: sales, profits and usually guidance.

In the Cluenex app, this explanation opens next to every expected move figure, with the live reading for the stock you are looking at. Open it in Cluenex