Modeling IV

[MrMuppet]

Don't think too, overly, technically and linearly. Remember, the market is a game...between people, and emotions. Forces. Everyday, it's part art ...part science.

You can't approach the market...with a scientists mindset, mind frame. It's similar to listening to music or watching a movie, you experience and observe a great deal of a range of emotions.

You can either choose to be a real world trader, or an academic trader. And last time I looked, academics don't make that much, or experience that much.

This video clip sums up the market everyday, the two forces colliding,

Lol, you're like the dude who doesn't understand how lightbulbs work, therefore calls them witchcraft and advocates candles

 

[Girija]

Don't think too, overly, technically and linearly. Remember, the market is a game...between people, and emotions. Forces. Everyday, it's part art ...part science.

You can't approach the market...with a scientists mindset, mind frame. It's similar to listening to music or watching a movie, you experience and observe a great deal of a range of emotions.

You can either choose to be a real world trader, or an academic trader. And last time I looked, academics don't make that much, or experience that much.

This video clip sums up the market everyday, the two forces colliding,

Seriously?....

 

[morganpbrown]

@MrMuppet would you mind explaining the x-axis on that cool looking graph that you posted?

 

[MrMuppet]

@MrMuppet would you mind explaining the x-axis on that cool looking graph that you posted?

It's simple: I take call IV for upside strikes and put IV for downside strikes.

 

[morganpbrown]

It's simple: I take call IV for upside strikes and put IV for downside strikes.

Interesting... Is there "put/call parity" at work there? Having some trouble wrapping my head around this. Why would you not plot the high delta calls (or puts)?

 

[ondafringe]

Interesting... Is there "put/call parity" at work there? Having some trouble wrapping my head around this. Why would you not plot the high delta calls (or puts)?

Did you get it figured out yet?

 

[MrMuppet]

Interesting... Is there "put/call parity" at work there? Having some trouble wrapping my head around this. Why would you not plot the high delta calls (or puts)?

Yes, it's put call parity.
The reason for this is liquidity. Look at the quote of a 90 delta ITM call. I'd rather take the IV of the 10 delta OTM put. The IV figure is the same (put-call parity) but the midprice is much more acurate.

 

[Atikon]

Don't think too, overly, technically and linearly. Remember, the market is a game...between people, and emotions. Forces. Everyday, it's part art ...part science.

You can't approach the market...with a scientists mindset, mind frame. It's similar to listening to music or watching a movie, you experience and observe a great deal of a range of emotions.

You can either choose to be a real world trader, or an academic trader. And last time I looked, academics don't make that much, or experience that much.

This video clip sums up the market everyday, the two forces colliding,

Fucking lol

 

[W-M-A]

You may wanna also have a look at the, Dumas, Fleming and Whaley paper.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7373

 

[vegamedic]

Don't think too, overly, technically and linearly. Remember, the market is a game...between people, and emotions. Forces. Everyday, it's part art ...part science.

You can't approach the market...with a scientists mindset, mind frame. It's similar to listening to music or watching a movie, you experience and observe a great deal of a range of emotions.

You can either choose to be a real world trader, or an academic trader. And last time I looked, academics don't make that much, or experience that much.

This video clip sums up the market everyday, the two forces colliding,