A FEW QUESTIONS ABT OPTION VOLATILITY 1) WHATS THE USE OF LOCAL VOLATILITY? THE COMPUTE PROCESS REQUIRES IV WHICH DERIVED FROM BS PRICE BUT IF U CAN DERIVE IV FROM BS U HAVE THE SKEW SO WHY BOTH WITH LOCAL VOLATILITY? 2) LOCAL VOLATILITY VARIES WITH MKT PRICE AND DTE BUT NOT TRUE COS THE PROCESS REQUIRE IV FROM BS SO HOW CAN LOCAL VOLATILITY PROVIDE REMEDY FOR SKEW?
When you say ABT is that a stock symbol or an Acronym? Why all caps? What are you referring to when you say local volatility? What is DERMAN? I not following your question(s).
DONT AGREE THE SKEW MAY DERIVE FROM BS WITH USE OF OPTION VALUE ANYONE WAN TO DISCUSS WHATS THE USE OF LOCAL VOLATILITY FOR A TRADER? WHY COMPUTE LOCAL VOLATILITY WHEN U CAN GET IV FROM BS?
IF U WAN SKEW U CAN GET FROM BS BUT THIS THREAD IS ABT THE USE OF LOCAL VOLATILITY NOT BS NOR THE SKEW
If you cannot communicate professionally without yelling at other people then you’ll never succeed at anything. Trading requires professionalism and attention to detail. And so does require communication. And so does require basic etiquette. You don’t walk into a room and start screaming like an idiot.