**Understanding Market Makers' Behavior**
Market makers are professionals who trade frequently to provide liquidity to markets. They have a unique perspective on market expectations.
**Focusing on Expectation, not Price**
While retail investors focus on the current price of assets, professionals and market makers look at the future expectation of prices.
**Implied Volatility: A Key Indicator**
Implied Volatility (IV) is a crucial indicator that reveals whether the market is expecting a rise or fall in prices. It's calculated from the current prices of Options contracts and provides insight into future price movements.
šø **High Implied Volatility** signals that options premiums are becoming extremely expensive, indicating a massive price move is imminent.
Market makers use IV to gauge the level of fear or confidence in the market. If IV is high, it's likely that professionals expect a significant price swing.
Keep an eye on IV levels to stay ahead of market movements! š
