Option Volatility Animation Sample
Stock Options Strategies: Watch Volatility very closely!
When it comes to trading in options, you have to be aware that risk becomes “multidimensional”.
You will face risks coming from multiple variables: not just the price of the underlying asset, but also volatility, time, interest rates could harm your trading strategy even when your very much close to your final profit target.
And detecting which of these variables has the biggest effect it's not always easy or trivial.
Obviously that can change depending upon the situation you have, but look at the wide effects of a sudden doubling of the implied volatility (not an usual event, but even not so rare).
A sold condor strategy like that displayed in the below animation could almost halve its at-now overall profits (all other things being equal) even when you are just two days away from the options expiration date.
I know the graph is quite sketchy, but I intentionally wanted to show how some effective viz stuff can be created even by sticking to basic Python tools like Matplotlib Animation.