Expected Move in Options Explained
Expected move in options explained. Learn how traders estimate expected move from options markets for earnings, strike selection, and risk planning.
Frequently asked questions
Is expected move the same as a price target?
No. Expected move is a market-implied range for a period of time, while a price target is a directional forecast. The two can overlap, but they answer different questions.
Can a stock move more than the expected move?
Yes. Expected move is only an estimate derived from option pricing. Realized moves can be smaller or much larger, especially around major news.
Why should I care about expected move if I already use delta and IV?
Expected move adds another layer of context. Delta, IV, and DTE help evaluate contract characteristics, while expected move helps assess how much movement is already priced into the chain.