SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

Christof+

More tools to analyze the earnings trades: www.art-of.trading

76 posts in this topic

Recommended Posts

5 hours ago, poseidolginko said:

Hello @Christof+.  Would it be possible to add EL?  Q4 earnings are confirmed for Aug. 20/18 before market open.  Thank you in advance.

 @poseidolginko, done. Let me know if you find more (are again on holiday this week, so might take a day or so)

Edited by Christof+

Share this post


Link to post
Share on other sites

The ssl certificate of art-of.trading expired last night (just to let you know. I got quite a lot of mails already, thanks for that).

A new one should have been automatically issued and deployed to the server yesterday. That did not work. I complained already this morning. My hoster promised on the phone to fix it within 24h.

Meanwhile, just accept to visit an 'unsecure' site in your browser and add an 'exception'. Nothing else has changed.

Share this post


Link to post
Share on other sites

Will take advantage of the trading free day today and start some IP rearrangements.

Until worldwide DNS entries have updated it will take max. 24h. Hence, depending on where you are located it might take a little while until the site is reachable again. Sorry for the short notice.

Share this post


Link to post
Share on other sites
2 hours ago, Christof+ said:

Will take advantage of the trading free day today and start some IP rearrangements.

Until worldwide DNS entries have updated it will take max. 24h. Hence, depending on where you are located it might take a little while until the site is reachable again. Sorry for the short notice.

image.png

Share this post


Link to post
Share on other sites

The second decimal place feels quite blunt when looking at symbols with low RVs, for example 0.25%. Having that extra decimal place and therefore resolution might be helpful in such charts. Perhaps an option to switch on and off?

Share this post


Link to post
Share on other sites

@pboongird IV rank is intended to give you a feel for how high IV is at the moment in relation to the range the IV was in over the last year. It basically gives you the percentage value of where IV stands in this range at the moment (0 is the bottom or minimum of this range, 100% the top). Putting it in a formula you would write

(actual IV - min(IV)) / (max(IV) - min(IV)) .

 

Also option sellers like to look at this number much, since high IV rank indicates high option prices in relative terms. While it is quite intuitive and around since long, I think it gained much of its popularity with TastyTrade propagating its use.

Share this post


Link to post
Share on other sites
8 hours ago, Christof+ said:

how high IV is at the moment in relation to the range the IV was in over the last year

Please let me ask a follow-up question to clarify my understanding. For the FOSL case highlighted in the table, you would use the actual IV of its options (12-02-2019 expiry) and the minimum IV for the duration dated back 1 year (or from 12-02-2019 to 12-02-2018 period) plugged into the formula given to come up with the IV rank percentage?

 

Share this post


Link to post
Share on other sites

@pboongird conceptually it is even simpler: for the implied volatility you take a theoretical value with a constant time to maturity of 30 days (similar like the VIX). That makes values comparable. You intrapolate it I think from the four existing most ATM and most around 30 days TTM which are actually traded. So the maturities constantly keep changing over time. For the range you simply look at the time from one year back until yesterday.

Share this post


Link to post
Share on other sites

@Christof+ - I have one request on your RV graph... I am wondering if it would be possible for you to help adjust the size of the line graph of the next expiry cycle to be a bit bigger/thicker? For example, it would be similar to the one highlighted in yellow below. Currently, only the Average RV line get all the attention (bold) but the cycle that should get our attention the most is very difficult to see. It doesn't need to be as thick as the Average line but should be a bit thinker or highlighted so we don't have to strain our eyes? It would be even better if you could have a big dot at its tail as a current time mark so we can easily see where the price is currently. It would be a great help to someone like myself that already have to wear a prescription glass all my life. Thank you for your consideration. B-)

PS. could you please add MDB to your database as well?

image.png

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy and free!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.