Trading Implied Volatility

What is implied volatility? How is it traded? What implied volatility trading strategies are commonly used in the derivatives markets?
These questions and more are examined in this concise introduction to trading implied volatility. This is the 4th volume of the popular Extrinsiq Advanced Options Trading Guides series. Implied volatility is explained as a predictor of volatility, as well as a way to view the price of options. How to gain exposure to implied volatility via options and other derivatives is detailed. Volatility curves, skew and smiles are all explained. The relationship between realised volatility and implied volatility is explored as well as volatility term structures.
Two sets of exercises are provided to test the reader's knowledge, with full worked solutions.