Recent content by isoroi

http://www.ivolatility.com/options.j?ticker=amd&R=0&top_lookup__is__sent=1 Why does it give two different values for the IV? One on the left column, and another on the right column. What about the December options?

So, where is a good site to get the IV for particular options?

I think I'm following now. I appreciate everyone taking time to break this down to me. However, you lost me on the 1 standard deviation. :P

Heh, you lost me on the probabilty of 68%. Where did you get that value? Gotcha on the actual trading days. Makes sense.

I 'think' its coming together now. :) Please assess my enlightened understanding with my summary below. I do a lot of covered call selling. I have a screener that I use that points out high return option plays. It does not give me the IV. I was falsely interpreting the high premium as...

Oops. 50/16*sqrt36=18.75% So, the market thinks there is a 50% chance that the share price will be within 18.75% of today's price in 36 days. Is this right?

So, two options with the same price, same volume, same everything, but with different option premiums. You can't look at the two and make the assumption based on premium which is bloated. And that's all based on previous pricing? And by looking at the IV of the two options, you can tell which...

So, based upon WayneL's response... and this option AMD 21.24 AMDAW Jan '07 17.50 C 4.21 2.21 1 0.50 50/16*sqrt2=4.419% So, the market thinks there is a 50% chance that the share price will be within 4.4% of today's price in 2 days? I have this feeling I'm completely wrong here.

Maybe this will help out. This is data from optionstoolbox for AMD sorted by IV. The last column is the IV.

Ok, it was a bad example, but an example nonetheless. :P Using your example, assuming they are the same strike and expiration, I would guess that the 2.65 was more bloated. I'd also make the same assumption that the 2.65 was more volatile. Am I correct? I can understand the...

I'm not offended. I've started reading a couple books, but to be quite honest, my eyes start to glaze when it starts talking about the option pricing and volatility. I was hoping for a specific, 101 type answer on how IV affects me as an option writer.

This was using yesterday's closing data. It wasn't supposed to be a realtime example, just an example.

That analysis is helpful. I'm more interested in buy-write scenarios. So, I would need to know specifically how IV benefits in those particular situations.

Lets look at this stock for example: CVC Cablevision Systems Corporation Stock was at: $28.41 Looking at the $30.00 strike options (CVCLF) which were selling for $1.95. Assuming I were to do a buy-write, my return would be around 6.86%. With only 2 days before option expiration...

Can someone explain to me how to interpret IV? I tried to do research on the web to get a better grasp of this concept, but it always seems to confuse me. The higher the iv, the higher the option premiums will be in relationship to their expiration. Is this correct? I also read that...