Just out of curiosity, how are people measuring this? Are people looking at it as a function of iv/hv? What time frame are you looking at HV on? 20 d? 30 d?
I look at 1 year and 3 month IV graphs, and make a subjective decision based on the overall picture.
Quote from thenewguy:
Just out of curiosity, how are people measuring this? Are people looking at it as a function of iv/hv? What time frame are you looking at HV on? 20 d? 30 d?
I consider the recent and seasonal HV relevant only for the stop loss and the exit target. I don't consider it relevant for the IV. HV looks only at the past, IV looks only toward the future.
Quote from thenewguy:
Just IV? You don't compare it to HV at all, just to itself?
