Glossary

Implied Move

The size of the price change, in either direction, that the options market expects a stock to make after a scheduled event such as an earnings report. It is read from the price of the at-the-money straddle expiring just after the event, divided by the share price: a $6.30 straddle on a $70 stock implies a 9% move. It is a range, not a forecast of direction, and stocks move less than it slightly more often than more.