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IMHO: "Implied Volatility" may be the most misunderstood and misused topic in option trading/evaluation. I am NO expert, but am trying to lessen my ignorance. It is customary to refer to the IV of specific options, of specific expirations, and of collections of option expirations. Each may be...

<-- I referenced the ATM (not ITM) and OTM options, which is per the VIX White paper. My comments above. If you like, you can contact me privately, as we seem to be miss-communicating.

If you merely want the IV of a specific option, I use the following in Perl, which seems to be adequate for my needs: # Solve for IV using B&S sub ResolveIV { my ($call_flag, $S, $X, $A, $T, $r, $iv, $q) = @_; # S: Stock Price # X: Strike price # A: Actual Option Price # T: Time to...

Hm.... Not intending to be negative, but seems you may not have a good sense for what you are trying to do, and/or the amount of effort required to accomplish it. Use of an IV Rank or Percentile for qualifying a trade, typically relates to a fairly standardized metric. To convince yourself of...

Something is off here! When trying that "study" are you sure you have your chart set to Daily bars, and are using a minimum of 1Year time frame? When I use it on GOOG, I see : which is identical to the TOS value: I believe (this is what someone at TOS responded once) this IV is based on...

If you use TOS, the following may be close to what you are looking for. (a study for IV Percentile): Note: this uses High and low over 52 weeks, instead of the frequency distribution, but is the method used by TastyTrade and TOS. --------------- declare lower; #declare hide_on_intraday; #...

Firstly, the question you pose is more vague than you may realize. For those seeking high precision, many non-trivial factors must be considered. If precision is not critical to you, the knee-jerk derivation of IV for a specific option Contract, is merely the IV required for the BSM model to...

Very good advice. TOS has the Live Support chat at your fingertips: I use it about once a week for TOS "undocumented" feature resolution.

I agree with Bob. Never saw that with equity/index options. However, I have observed movement of the Asked, to higher values as I increase my Bid on some less liquid options. If I bid at the asked, price, am always filled (sometimes partial if the ASK size was insufficient).

Bob is not really a newbie. He has been here before with a different company. He does know his stuff, and has helped many of us here.

The importance of the greeks are a function of the type of trader and the type of trade. Pure directional traders probably have only a passing interest, such as Delta. They (the greeks) do help in understanding a trade's sensitivity to specific influences, and to manage more complex option...

As long as you "KNOW" what the underlying price will be at a specific date in the future, and that will be profitable, then you stand to make a lot of money with the Calls! (OTM will be better if they are ITM enough at your future date.) So, basically I have provided absolutely no insight! The...

Looking at VX Futures (front month) on 12/16/2014, which should be the last day for trading VXZ4 (the front month), TOS references VXF5 instead. This is one day earlier than I expect, for the transition (Tuesday instead of Wednesday). (similar issue with many earlier months as well) I need to...

Backtesting option trades may be done by various tools, however, few, if any, provide much systematic automation. If you have TOS; a quick and dirty method is to use ThinkBack with end of day pricing (may be adequate for your needs). Other tools, that provide more bells and whistles, but are...

Earlier, I posted a basic example hedge trade from a presentation by Don Kaufman of Theotrade. Here is a good critique of that Risk Twist spread trade. "https://www.evernote.com/shard/s2/sh/ac42dd1b-1651-40b1-8117-534aa35b6f1b/1c9f0ee921cd1102". -- There are some opportunities for...

Trader13: Hey, watch it now! I resemble that remark! ;-)

RLT: Interesting. Can you clarify your statement: "While our back testing indicates that this plan does make money, that's not its real purpose which is to protect our primary market assets from Black Swan events."? I'm guessing, this means it DID more than adequately protect the "set of...

Correction: instead of "do not trade bonds with them" Should have stated "there are better sources for bond trading"

Part 1: Whether "great" or not dependent on traders' goals and risk tolerance. Blue Chips will typically have a higher IV than the Indexes they are a part of. Part 2: False! TDA is not a Scam. (but do not trade bonds with them)

Another "twist" to merely observing VIX level... Vix in Backwardation: High danger, Vix transitions to full Contango: Clear Sailing! -- Sometimes this stutters but often is useful.