Volatility

Volatility Clustering

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Tendency for volatility to persist in clusters

What is Volatility Clustering?

Volatility Clustering The empirically observed tendency for large price changes to be followed by large price changes and small changes to be followed by small changes, regardless of direction. This means volatility is autocorrelated and tends to persist in regimes. Options traders can exploit clustering by selling options during declining volatility periods and buying during rising volatility.

Complete Definition

The empirically observed tendency for large price changes to be followed by large price changes and small changes to be followed by small changes, regardless of direction. This means volatility is autocorrelated and tends to persist in regimes. Options traders can exploit clustering by selling options during declining volatility periods and buying during rising volatility.

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Written by
ApexVol Research Team
Quantitative options research
All calculations use live ORATS institutional data — the same source used by professional volatility desks.
RS
Technical reviewer
Ryan Silk, ApexVol Founder
Reviewed for technical accuracy
10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.
This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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