[amibroker] Re : volatility indicators to help with option trading

["Steve Almond" <steve2@xxxxxxxxxxxxxxxxxxxx>]

Could you explain how you use these volatility curves? What sort of 
pattern/crossing would tempt you to buy an option, for example?
 
Thanks,
 
Steve
<BLOCKQUOTE 
>
  ----- Original Message ----- 
  <DIV 
  >From: 
  Arthur 
  Sawilejskij 
  To: <A title=amibroker@xxxxxxxxxxxxxxx 
  href="">amibroker@xxxxxxxxxxxxxxx 
  Sent: Thursday, April 01, 2004 1:46 
  PM
  Subject: Re: [amibroker] Re : volatility 
  indicators to help with option trading
  >Hi, I am currently trade option >I 
  am using the following volatility comparing short term and long  
  >term volality to time when to buy and sell 
  options.>>pds1=30;//Set your time period>pds2=200;//Set 
  your time period>Graph0 = 
  StDev(log(C/Ref(C,-1)),pds1)*sqrt(365)*100;>Graph1 = 
  StDev(log(C/Ref(C,-1)),pds2)*sqrt(365)*100;>>Does anyone has 
  better indicator that they use to compare short/long >term 
  volatility?>>Cheers>>HenryI trade options 
  in Australia as well.I use the following for the 
  volatilityGraphXSpace=10;Plot(StDev(log(C/Ref(C,-1)),20) 
  * sqrt(260)*100, "20 days", colorRed, 
  styleThick);Plot(StDev(log(C/Ref(C,-1)),30) * sqrt(260)*100, "30 
  days", colorBrightGreen, 
  styleThick); Plot(StDev(log(C/Ref(C,-1)),90) * sqrt(260)*100, 
  "90 days", colorYellow, styleThick);I use 20 and 30 days to 
  compare short term as my option trades are usually in options that have 4 to 6 
  weeks till expiry - 20 to 30 days.I compare that to the 90 - which is 
  what you want for HV.One further point - we have 260 trading days in 
  the year - hence my 260 compared to your 365 days.I think you will 
  find if you use my figures you will get HV measures that accord with the 
  official ones you get from the ASX - the HV values you calculate would be way 
  off and not much help in working out if your shares/options are overvalued, 
  etc.Been using the setup successfully for ages - great help for option 
  trading and keeps me out of trades where volatility shifts might kill the 
  trade.BundySend BUG 
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