There is historical volatility and implied volatility. One is an input to the option pricing module, the other is an output of the model. Together they create 4 scenarios
| Historical Volatility | Implied Volatility | Trend |
|---|---|---|
| Low | Low | Sideways |
| Low | High | Expect a big move |
| High | Low | Consolidate |
| High | High | Trend Continues |
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