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Showing results for tags 'iv'.
Found 5 results
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Higher implied volatility for less time to maturity if strike price is low?
StepBack posted a topic in General Board
Hello Forum, I'm new so please pardon me for not choosing the right sub. I do have data from options with different Strike prices, times to maturity & IV. I thought that a longer time to maturity ceteris paribus always results in a higher IV. However, I fount in the data that if the strike is significantly lower than the underlying, then the IV is higher for shorter times to maturity. Can someone explain to me why that is the case? Thank you very much!-
- strike price
- time to maturity
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Where is the best place to find a list of low IV stocks such as NKE that will have really strong Gamma gains on moves. I've had success trading straddles on NKE before joining the group and is it a matter of looking through a bunch of stuff or is there a site that will help aid in that search? Thanks
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If I know IV at open can calculate the price and vice versa. At the Open know neither. IV at the subsequent, published Close cannot be used since IV is not constant during the day. How is the price or IV calculated at the Open? I need this for back testing. Do not have funds to pay for data.
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I'm creating this topic to discuss one of the most important aspect of options trading - Implied Volatility. We will discuss examples how IV impacts our trades. I welcome questions from members and forum guests (registration required).
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did anyone play healthcare stocks prior to the Supreme Court decision?
cwerdna posted a topic in General Board
Did anyone buy strangles or straddles on healthcare stocks, hoping for an IV rise prior to the decision by the Supremes? I took a look at http://www.optionistics.com/ on stocks like UNH, ESRX, WLP, AET, HUM and CI and it seems most of them already (except ESRX) have seen a spike in IV vs. historical volatility. So, I'm guessing it's probably too late to buy before the Supremes make their decision known. Maybe someone could trade on the IV crush that might happen afterward, but I'm a bit too chicken to try that, in case those stocks make big moves. edit: I found some other possible plays at http://www.zacks.com...in-the-balance and http://money.msn.com/top-stocks/post.aspx?post=fbad2fea-0d2f-4146-9239-d98f13f3e519.- 4 replies
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- healthcare
- health care
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