High volatility

Discussion in 'Options' started by ChrisM, May 15, 2003.

  1. ChrisM

    ChrisM

    Looking for the service picking up extremely high volatility optionable stocks.
    Thx in advance.
     
  2. trdrmac

    trdrmac

    Chris,

    Try this free site

    http://www.coveredcalls.com/

    In theory the stocks they have with the high premium have the highest volatility.

    In posting this though, for you and others I would say be careful with some of the hype and pick your spots.

    Regards
     
  3. ChrisM

    ChrisM


    Agree, the question is how to spot them ?
    Site is interesting, thx.
     
  4. trdrmac

    trdrmac


    Way back when there were a few option screeners on the web that would let you screen for free. And of course a handful of pay sites. I used to screen for contracts trading on increased volume which gave some interesting leads.

    I guess the question would be what are you trying to accomplish with the volatility screen.

    For instance, MCI bought a company in 2001. This created a very favorable risk reward for selling options. And it could be easily hedged.

    However, BPUR which is listed in CC with a 10%+ premium may or may not be worthwhile. And since the next contract down is 50% away from the price it could be time for rub a dub dub.
     
  5. Trajan

    Trajan

    ivolatility.com
     
  6. ChrisM

    ChrisM

    I believe my approach in this is quite traditional: once I want to sell premiums (in complex position) I need high premium/underlying ratio.
    CC is interesting, so the question: do you trade such penny stocks options ? Have no experience with them. How is liquidity ?
     
  7. ChrisM

    ChrisM

    This one I know and use it, it`s pretty good.
    Thx Trajan.
     
  8. trdrmac

    trdrmac

    i stay away from the smaller stocks in general, poor liquidity, especially in the options is one of the bigger reasons.

    I have charted some of the stuff on CC when volatility gets high, but most of the charts are pretty scary to try and grab a 10% premium. You may have 20 or so stocks when the vix pops, right now though it is slim picking.

    Although it may be interesting to look at the calls on stuff like LU, NT and a few of the other fallen angels. But for my money sticking with options on the Qs and other etfs is a lot more cost effective.
     
  9. just21

    just21

    try smartsearchxl at www.poweropt.com it is a database of option prices that can be defined anyway you like. They have a free trial
     
  10. ChrisM

    ChrisM


    Well, BPUR`s Open Interest is over 5K and Vol 172, that`s not bad, isn`t it ?
    Also, I`ve just checked bid/ask, now is 75/95. It is wide, but per stock price still looks attractive.
     
    #10     May 16, 2003