What's the highest IV in the past? Why?

Discussion in 'Options' started by OddTrader, Jul 12, 2009.

  1. Very interesting indeed!
     
    #11     Jul 13, 2009
  2. spindr0

    spindr0

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    Quote from arizonadreamer:

    Not for the faint of heart, but LDK is scheduled to report after the close. I believe IV is over 200.

    AZD
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    Pizza Boy was right. LDK's IV was over 200 at that time. And it revisited 225+ last November (see an annual chart of IV at IVolatility.com)
     
    #12     Jul 13, 2009
  3. I am reading someone believed the highest IV during early last year can be over 450% caused by the financail crisis.
     
    #13     Aug 23, 2009
  4. hidge

    hidge

    Dendreon Corp. (DNDN)

    A biotech company that was facing a critical announcement back on April this year.

    The IV was as high as 430% on the front month and back month options

    The stock was trading around 5$ and you could sell the back month straddle for 6$ so you could profit even if the stock went to zero!

    But as the old cliché goes... there are no free lunch,

    The stock was trading around 20$ the day after the announcement

    Just for the trivia guys...
     
    #14     Aug 23, 2009