Some obvious facts...

Quote from mutluit:

No, his and your calculations seem to aim exercising options,
I on the other side am interessted profiting by trading the crap in as short a timeframe as possible (upto about 2 weeks), ie. profiting by the premium delta only.
More...

Especially if you don't hold your option to expiry you will have to trade it at the price set by the market. If you take this price value and put it in the BS formula you will get a volatility value a.k.a. the implied volatility. So you must agree that it has some practical value for trading.

I think there is some communication barrier and this is not only language. You seem to speak your own "technical language" but in order to communicate with other ppl you have to make an effort to speak the same language. Especially when respected professionals take the time to answer to you.
 
Quote from kapw7:
Especially if you don't hold your option to expiry you will have to trade it at the price set by the market. If you take this price value and put it in the BS formula you will get a volatility value a.k.a. the implied volatility. So you must agree that it has some practical value for trading.

I think there is some communication barrier and this is not only language. You seem to speak your own "technical language" but in order to communicate with other ppl you have to make an effort to speak the same language. Especially when respected professionals take the time to answer to you.
More...
I understand what you mean. Indeed there are some language barriers (I'm not so fluent with my english, living in Germany),
and I haven't researched who is veteran here; got many attacks from all sides, could not filter the veterans...

Regarding IV: I even have written my own little program for getting the IV of a strike, here's an example session (in a Linux shell):

# ./bsvola2.exe
usage: pgm midcall midput spot strike days irpct

# ./bsvola2.exe 0.35 0.85 17.51 18.00 40 0.0
CallVola : 19.935891%
PutVola : 20.313039%
AvgVola : 20.124465%

BTW, that's of Dec12 YHOO 18
YHOO121222C00018000 0.35 0.08 0.34 0.35 1,965 7,571 18.00 YHOO121222P00018000 0.85 0.15 0.85 0.86 360 1,912
http://finance.yahoo.com/q/os?s=YHOO&m=2012-12
 
Quote from mutluit:

I understand what you mean. Indeed there are some language barriers (I'm not so fluent with my english, living in Germany),
More...
I haven't worked out the maths...but you defintely can be complimented on your (english) language skills. IMHO better than many Americans. :)
 
You must log in or register to reply here.
Back
Top