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Expected Move

An expected move is an anticipated price change. It is determined using
and will affect both the probabilities and prices of the options. Implied volatility can be used to calculate expected move for any time frame by multiplying the underlying price, the implied volatility percentage, and the square root of the number of days divided by 365:

EM = ($UL) • (IV) • √(DAYS/365)

EM = Expected Move
$UL = Underlying Price
IV = Implied Volatility %
DAYS = # Days

Expected Move Shortcuts

IV: 19.1% = 1% daily move
IV: 7.2% = 1% weekly move
IV: 3.5% = 1% monthly move

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