Questionnaire 2 of 10 · 10 questions
Markets and execution
Volatility, liquidity, spreads and the price of a fill.
Choose one answer per question. Explanations appear as you answer; your score appears after all ten.
- 01
An option is bid $0.20, ask $0.25. How wide is that spread?
- 02
What does implied volatility actually represent?
- 03
A strike shows 4,000 open interest and zero volume for a week. What does that tell you?
- 04
IV traded 15–20 all year except one spike to 80. Today it is 25. What does IV rank say?
- 05
A single stock shows IV percentile 95 while the broad market sits near 30. What is the sensible reading?
- 06
Why does the same underlying show higher implied volatility on lower strikes?
- 07
Why should you never send a market order on a wide options chain?
- 08
A quote is $1.90 bid / $2.10 ask. Selling at the bid instead of the midpoint costs how much for one standard contract?
- 09
IV has ranged from 20% to 60%, and is now 30%. What is IV rank?
- 10
What does a sell limit order at $1.50 guarantee if it fills?