The first step [for the pros only]

Quote from babutime:

But bloomberg is so massive in terms of its usage i found it rather difficult to analyze multiple securities at once from some kind of watchlist- I admit I'm new to it so I probably haven't figured it out.
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I don't rely on Bloomberg platform to analyze volatility, I'd rather use Bloomberg's API in order to have dynamic spreadsheets which I can manipulate according to my needs.

Using API in Excel is very easy: if your school has a Bloomberg terminal try these formulas...

=BDP(...) for dynamic datas
=BDH(...) for historical datas

...and use these to analyze IVTS' behaviour in the past and in the present.
 
Quote from TskTsk:

Cant you just connect IB TWS to Excel and then analyze the skews directly in Excel?
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I do not really know if it's a problem just of mine, but, when my ActiveX Excel spreadshhet IB connected needs to refresh options prices and IVs, it freezes for a while.

As this happens every 9 seconds (or less), it's almost impossible to work and make analysis during real time updating, unless you don't wanna wait five minutes (or more) to run a linear regressione or something similar.
 
Quote from Cren1:

I do not really know if it's a problem just of mine, but, when my ActiveX Excel spreadshhet IB connected needs to refresh options prices and IVs, it freezes for a while.

As this happens every 9 seconds (or less), it's almost impossible to work and make analysis during real time updating, unless you don't wanna wait five minutes (or more) to run a linear regressione or something similar.
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Not sure about ActiveX, but I use DDE to feed Excel and it's working perfect, prices are updating instantly...maybe try switching to DDE if you can
 
Quote from Cren1:

I do not really know if it's a problem just of mine, but, when my ActiveX Excel spreadshhet IB connected needs to refresh options prices and IVs, it freezes for a while.
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My Excel DDE freezes too.... I hate it.

I'll be working on a java implementation of it and see if it is smoother that way.
 
Quote from TskTsk:

Not sure about ActiveX, but I use DDE to feed Excel and it's working perfect, prices are updating instantly...maybe try switching to DDE if you can
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I switched to ActiveX 'cause some friends suggested me it's more stable than DDE :D
 
I just had a thought. I keep hearing buzz about market going into a short term correction. I mean I think it's safe to say its only a matter of when and not if.

How would one test for this quantitatively? And no, the "stochastics" plot ( which has nothing to do with stochastics or stochastics calculus laughably ) and the "RSI" or any of that stuff is not what I'm looking for. If anything a simple MACD is useful but even that used to be the domain of hedge funds and now that everyone uses it its no longer that relevant.

Would one look at skews of major indices- SPX, NDX, or perhaps the treasury yields and figure out what the skew is telling along with open interest levels at certain strikes? What about fundamentals data? The market absorbs any news instantly so it's not like any news that is indicative of any future event haven't been priced in.

Or do you guys not care at all and are in positions that are continually gamma hedged? Or perhaps its as simple as looking at mean reversion parameters?

Am I even asking the right questions?
 
Quote from sonoma:

Could you restate what you're asking?
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How do you test whether or not a market is about to reverse?

(without technical analysis)

And if you don't, then perhaps the strategy is to be gamma neutral (or some other hedged strategy...) ?

That was the gist of it...
 
Quote from Cren1:

Excuse me, IVtrader, just a question: don't those profitable option traders would prefer analyzing open interests' distribution instead of supports and resistances from charts for such a goal?

Then I suppose they look for technical signals in weekly or monthly charts, not daily... right?
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nope. they have given multiple presentations in a trading community I belong to, and open interests distribution hasn't rated even a "minutes time" compared to the over 15 minutes they spent on the charts using multiple forms of TA. and yet the TA was only one of many factors in their decisionmaking
 
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