any option sellers

[Brighton]

are you just throwing a random vol number out there like 55%? isnt forecasting the vol equivalent to forecasting price action in the underlying and therefore just as difficult?

so is the iv index on cboe the 52week?

Yes, it's difficult, but as the really smart option guys on this site (I'm not one of them) will tell you, you have to have an opinion on volatility and price direction. "Flat" or "I don't know" is OK, just be sure you have an appropriate strategy for that. Or stay out until you have a stronger opinion.

I kind of made that 55% figure up, but you'll see longer term shifts in HV and IV as smaller companies mature and become profitable and more predictable. Volatility shifts can also occur in the titans based on macro-economic factors, recovering from an isolated bad spell, figuring out how to smooth their earnings, etc. Look beyond a six or twelve month chart and you'll see what I mean.

Re the CBOE site, I think you mean the option tool that's provided by Trading Block? I'm not familiar with that company or tool, but I scanned some high IV names and yes, it's an annualized figure, but double check the results elsewhere. Two Colombian stocks on the NYSE caught my eye - EC and CIB. Very large (for that country) and pretty boring. Trading Block shows the 20-day IV annualized at over 100%. It should be about a quarter of that. The HVs looked OK. Just be careful if any foreign names interest you.

 

[crayon851]

Yes, it's difficult, but as the really smart option guys on this site (I'm not one of them) will tell you, you have to have an opinion on volatility and price direction. "Flat" or "I don't know" is OK, just be sure you have an appropriate strategy for that. Or stay out until you have a stronger opinion.

I kind of made that 55% figure up, but you'll see longer term shifts in HV and IV as smaller companies mature and become profitable and more predictable. Volatility shifts can also occur in the titans based on macro-economic factors, recovering from an isolated bad spell, figuring out how to smooth their earnings, etc. Look beyond a six or twelve month chart and you'll see what I mean.

Re the CBOE site, I think you mean the option tool that's provided by Trading Block? I'm not familiar with that company or tool, but I scanned some high IV names and yes, it's an annualized figure, but double check the results elsewhere. Two Colombian stocks on the NYSE caught my eye - EC and CIB. Very large (for that country) and pretty boring. Trading Block shows the 20-day IV annualized at over 100%. It should be about a quarter of that. The HVs looked OK. Just be careful if any foreign names interest you.

According the the cboe site, the IV I'm using is provided by ivolatility. I still feel that credit spreads would be the most successful due to the ability to change your position to give you a credit. Yeah the loss is realized, but the net loss is still at 0 or positive.

 

[crayon851]

For debit spreads, do you have to exercise the options i.e take stock for a time period to profit? or are you able to close them before hand for a profit?

 

[newwurldmn]

For debit spreads, do you have to exercise the options i.e take stock for a time period to profit? or are you able to close them before hand for a profit?

You spend a lot of time on volatility forecasting. You should spend some time on understanding basic options concepts and put-call parity.

A debit spread is equivalent to a credit spread. A call credit spread is a put debit spread.

 

[Dolemite]

You spend a lot of time on volatility forecasting. You should spend some time on understanding basic options concepts and put-call parity.

A debit spread is equivalent to a credit spread. A call credit spread is a put debit spread.

To add to this, you should also really understand the greeks especially trading the strangles. Today should give you a good idea on those strangles you sold of what a pop in volatility will do to the positions.

 

[crayon851]

is it possible for people to not respond condescendingly and actually answer a question, rather than provide a comment that is not beneficial.

my question is simple and i did look it up online. I just wanted to know if there is another way to carry out debit spreads other than having to exercise them for profits.

so can someone non condescendingly provide me with a response? or is it too hars for some of you option academics. we all have the same goal, to make money, so why make it harder for each other?

 

[newwurldmn]

is it possible for people to not respond condescendingly and actually answer a question, rather than provide a comment that is not beneficial.

my question is simple and i did look it up online. I just wanted to know if there is another way to carry out debit spreads other than having to exercise them for profits.

so can someone non condescendingly provide me with a response? or is it too hars for some of you option academics. we all have the same goal, to make money, so why make it harder for each other?

If you believe I was being condescending, I wasn't. Good luck on your studies of the markets.

 

[crayon851]

rather than answer a question, you post a comment suggestinf something else. thats condescending. gfy.

 

[zdreg]

is it possible for people to not respond condescendingly and actually answer a question, rather than provide a comment that is not beneficial.

my question is simple and i did look it up online. I just wanted to know if there is another way to carry out debit spreads other than having to exercise them for profits.

so can someone non condescendingly provide me with a response? or is it too hars for some of you option academics. we all have the same goal, to make money, so why make it harder for each other?

be satisfied if not grateful that you received answers pointing you in the right direction. this is not school where you received a feely good education. you are not a mister wonderful, not like what your teachers told you and unlike mr. wonderful on ....

i reread new... answer and it is spot on. your feel of being condescending shows your lack of experience in life and education.. take his info and run with it.

 

[crayon851]

its called being a decent human. if someone asks you for directions, are you going to tell them exactly where to go provided you know? or are you going to be a douchebag and tell them they should know because they came from that direction?