Expected Move
A statistically derived price range implied by options volatility over a specific timeframe.
Explanation
Expected move is typically approximated as: underlying price x implied volatility x square root of time (in years). It is a probability range, not a hard boundary. Traders use expected move for strike selection, risk planning, and post-event volatility analysis.
Example
If a stock is at $100 with 30% IV and 30 days to expiry, the 1-sigma expected move is about +/-$8.6.