options - extreme IV?

David's faith

David's faith

Lets say instead of going short with stocks on BA for the last hour, you went short a OTM call 10 days out to earn some time decay too. How would you determine/calculate the risk for Volatility exploding even when the stock price falls (like when it massively falls)? Can I calculate that somehow with IB TWS options lab?
 
David's faith said:
Lets say instead of going short with stocks on BA for the last hour, you went short a OTM call 10 days out to earn some time decay too. How would you determine/calculate the risk for Volatility exploding even when the stock price falls (like when it massively falls)? Can I calculate that somehow with IB TWS options lab?
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Try this tool: https://optioncreator.com/
- You can add new position as well remove them; it's very flexible.
- Better always set the Min and Max ranges as the default Auto sometimes doesn't work.
- And finding IV from the Premium sometimes gives an incorrect IV value, but it does not matter, since the Premium takes precedence over IV.
 
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