“You need to think about [Volatility] as another tool in your toolbox,” says Hedgeye CEO Keith McCullough. He and Senior Macro analyst Darius Dale explain various key aspects of the Implied Volatility model to help investors with their decision-making.

“You need to have multiple tools if you want to build something that is relevant, stable, and produces something for you over time. Implied volatility signals are quite simply one other weathervane to think about when you are making a decision.”

McCullough: How To Think About Volatility Signals - risk ranges