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crgarcia

Registered: Dec 2006
Posts: 3020

11-05-09 11:01 PM

If so, what you do?
Watch VIX?

How you measure high or low IV?

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matador04

Registered: Oct 2007
Posts: 243

11-06-09 01:36 AM

IV, delta, Gamma, Theta have to be watched. VIX is watched by those that trade anything related to s&p. If you're trading MSFT options, then you should watch MSFT IV. And not just the month you're exposed to but the whole term structure.

I recommend you read Baird's book...it's eye-opening

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dagnyt

Registered: Nov 2003
Posts: 1773

11-07-09 02:21 PM

Quote from crgarcia:

If so, what you do?
Watch VIX?

How you measure high or low IV?

VIX is good enough to get a general idea of how implied volatility is moving in the options universe.

But, as has been mentioned, the IV of your specific investment is more important.

Mark

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erol

Registered: Mar 2009
Posts: 196

11-07-09 02:34 PM

Quote from matador04:

IV, delta, Gamma, Theta have to be watched. VIX is watched by those that trade anything related to s&p. If you're trading MSFT options, then you should watch MSFT IV. And not just the month you're exposed to but the whole term structure.

I recommend you read Baird's book...it's eye-opening

which book is that?

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matador04

Registered: Oct 2007
Posts: 243

11-07-09 04:44 PM

Quote from erol:

which book is that?

http://www.amazon.com/Option-Market...y/dp/0471578320

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erol

Registered: Mar 2009
Posts: 196

11-07-09 06:54 PM

thanks!

another to add to the ever growling list lol

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