Do you watch implied volatility when trading options?

IV, delta, Gamma, Theta have to be watched. VIX is watched by those that trade anything related to s&p. If you're trading MSFT options, then you should watch MSFT IV. And not just the month you're exposed to but the whole term structure.

I recommend you read Baird's book...it's eye-opening
 
Quote from crgarcia:

If so, what you do?
Watch VIX?

How you measure high or low IV?
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VIX is good enough to get a general idea of how implied volatility is moving in the options universe.

But, as has been mentioned, the IV of your specific investment is more important.

Mark
 
Quote from matador04:

IV, delta, Gamma, Theta have to be watched. VIX is watched by those that trade anything related to s&p. If you're trading MSFT options, then you should watch MSFT IV. And not just the month you're exposed to but the whole term structure.

I recommend you read Baird's book...it's eye-opening
More...

which book is that?
 
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