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One of the best places you can go online for information on tracking implied volatility information for stock options is through http://whatstrading.com. They have information on what you are looking for as well as trading premiums, on demand analytics, and various case studies on the trade.
What else can I help you with?
Where can I find the implied volatility of a specific stock?
You can find the implied volatility of a specific stock by looking at options prices on a financial website or platform, or by using an options pricing model like the Black-Scholes model. Implied volatility is a measure of how much the market expects a stock's price to fluctuate in the future.
How to Trade with Volatility Skew?
Volatility skew refers to the pattern where options with different strike prices or expiration dates show different levels of implied volatility. In simpler terms, implied volatility is a measure of the expected price fluctuations of an asset, and traders use it to determine the price of options. Ideally, novice traders can assume options with the same underlying asset to have the same implied volatility, however, that is not always the case. Volatility skew happens when options with different strike prices (the price at which the option can be exercised) have different implied volatilities. This occurs due to market perceptions of risk, demand for particular options, or past market events, leading traders to price them differently. Traders might notice volatility skew in equity and index options like Nifty and Bank Nifty.
Are there some stock options that are overpriced or under priced?
Value is subjective, but in general, options are over priced, particularly when implied volatility is very high.
What is volatility smile?
The volatility smile is a long-observed pattern in which at-the-money options tend to have lower implied volatilities than other options. The pattern displays different characteristics for different markets and results from the probability of extreme moves
How do you calculate implied volatility using solver?
To calculate implied volatility using Solver, you need an options pricing model (such as Black-Scholes) and market data (including the option price, strike price, underlying asset price, risk-free rate, time to expiration, and any dividends). Build the pricing model in a spreadsheet, input the market data, and set the initial volatility value in Solver. Set the objective to match the calculated option price with the market price by changing the volatility cell. Run Solver to find the implied volatility that minimizes the difference between the calculated and market option prices.
How does the VIX work to measure market volatility?
The VIX, also known as the volatility index, measures market volatility by tracking the expected volatility of the stock market over the next 30 days. It is calculated based on the prices of options on the SP 500 index. A higher VIX value indicates higher expected volatility, while a lower value suggests lower expected volatility in the market.
Where can I learn about the options for vehicle tracking?
You can get information on vehicle tracking from a vareity of websites that are dedicated to this topic. Simply perform a websearch on vehicle tracking to get the information you need.
What is a commodity option trading system?
In commodity option trading each contract will have a different implied volatility. Traders in commodity options have a different perception of risk in that it is bi-directional.
Why option premium changes daily and how in index and stock options?
The option premium changes based on the change of stock price, days to expiration, change in implied volatility and dividend price. Options Weekly has a nice tutorial on options, see related links.
How can traders use the NSE Option Chain to improve their trading decisions?
Traders can leverage the NSE Option Chain to analyze open interest, implied volatility, and option premiums. By identifying key support and resistance levels, tracking market sentiment, and monitoring changes in call and put options, they can make well-informed trading decisions and optimize their strategies.
Black Scholes Why do you think implied volatility from option prices diverge from their theoretical values?
Black-Scholes assumes the returns on prices follows a Normal (Gaussian) distribution. As the markets figured out this isn't the case, traders started demanding more money for options that were further out-of-the-money. This is called the "volatility smile".
What is oil vix?
OIL VIX is the CBOE Volotility Index Created by the Chicago Board Options Exchange as a measure of equity market volatility. The VIX was introduced in January 1986. Since January 1993, the VIX has been computed in real time throughout the trading day. The computation of the value of VIX is based on the implied volatility of eight option series on the S&P 100 index, or OEX. The VIX is quoted in percentage points per annum. For instance, a VIX value of 19.28 represents an annualized implied volatility of 19.28%. The VIX is sometimes called the investor fear index, since investor uncertainty can lead to high market volatility through drops in prices, such as happened on Black Monday in 1987. Options are traded on the VIX, enabling additional hedging and speculation positions on volatility. Closely related to the VIX are the VXD, or CBOE Dow Jones Industrial Average Volatility Index, and the VXN, or CBOE NASDAQ 100 Volatility Index.
