I am trying to sell option premium and my method is good at determining when a stock is consolidating before a major move up or down. I have found a few that have an amazing amount of premium that seemed almost irrational. I want to be able to screen for a given option on an underlying that I think is going to move. How can I do that?
Finding highest option premium
- Thread starter spinn
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https://www.barchart.com/options/iv...=optionsImpliedVolatilityRank1y&orderDir=desc Click on iv column header.
Also what is a high amount of premium.....do you understand how Implied volatility works when looking at premiums...
Thank you, but suppose I find a stock I want to trade. I am hoping to see which options in that universe have the most premium.
The price in excess of intrinsic value. I do take risky trades at times but almost all have worked out. That is what the method I use is reasonably good at.
Got it. That is the extrinsic value then. You will find the highest extrinsic value at-the-money (ATM). That is for the highest absolute extrinsic value within a specific expiration.
For highest relative extrinsic value, you look at the pricing in IV terms. So, you must look at the IV curve across expirations. Figure out why there are big humps in the curve, there is a big upcoming event there.
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Put the iv column on the ib option trader screen. Right click on the headers select columns then options.
Sell short dates like 3 day and single stocks small notionals both ways around. They have no skew which only appears on the index averaging but I think is right. Apparently its obvious the dirac gamma function in a very general setting. I have been informed I'm an idiot and will not be tolerated for long
I think so that the translation and scaling of ze gamma function may still need some conditions on the volume along the path which may involve lower bounds on some operators. Then we can say it is 1/k^2 and in fact it is mosty right that you can price a variance contract like that. At least now we know why they have gamma, what an fva is foing what fixing risk is and so it was still a worthwhile exercise for me. It follows trivially from the generalizations of the cauchy integral theorem to high dimensional division algebras.