Lets say instead of going short with stocks on BA for the last hour, you went short a OTM call 10 days out to earn some time decay too. How would you determine/calculate the risk for Volatility exploding even when the stock price falls (like when it massively falls)? Can I calculate that somehow with IB TWS options lab?
Try this tool: https://optioncreator.com/ - You can add new position as well remove them; it's very flexible. - Better always set the Min and Max ranges as the default Auto sometimes doesn't work. - And finding IV from the Premium sometimes gives an incorrect IV value, but it does not matter, since the Premium takes precedence over IV.
https://www.princeton.edu/~yacine/comp.pdf https://www.econstor.eu/bitstream/10419/82454/1/wp_088.pdf https://www.bis.org/publ/bisp06e.pdf https://core.ac.uk/download/pdf/14912922.pdf https://assets.informa.com/connectls/GLOBAL FINANCE/2022/Risk and QuantMinds/Paper.pdf https://www.dnb.nl/media/hordszwd/working-paper-no-613_tcm47-379849.pdf