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It took me too long to answer you cause i was
looking for it in back up cds, i didnt found it , if i find it by accident ill
post it, i had both the implied formula and the formula for the iv/hv ratio
along iwth an expert
Bye
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Freddie
Ng
To: <A
title=Metastockusers@xxxxxxxxxxxxxxx
href="">Metastockusers@xxxxxxxxxxxxxxx
Sent: Wednesday, April 09, 2003 1:21
PM
Subject: Re: [Metastockusers] Stock
Option
Pablo,Is there any possible recovery of the implied
volatility formula ? Can you find it and send to me.Best
RegardsFreddie NgAt 01:10 PM 4/9/2003 -0300, you wrote:
actually
no, i checked and its not there anymore implied volatility was a costum
formula someone gave to me, the one in the quick list is a 21 days
HV P
----- Original Message -----
From: Freddie Ng
To: <A
href="">Metastockusers@xxxxxxxxxxxxxxx
Sent: Tuesday, April 08, 2003 1:18 AM
Subject: Re: [Metastockusers] Stock Option
Pablo,
Thanks for the advise for buy/sell on volatility. You are right, the
IV high-low must have a base for reference, otherwise it is meaningless.
If we can have a historical volatility of the option IV, that should
serve our purpose, right ?. Apply IV/HV will then yield the ratio, if
ratio <1, buy and if ratio is >1 sell. Is this what you use ?
Thanks for the Meta HV formula, on comparison, I realize I had it
programmed in my indicator already. It was kind of you to point out that
HV is for stock and not on option. I would have taken it for
option.
The IV indicator you mentioned is referring to the "option volatility"
in the indicator drop down menu ?
As for the Greeks, as an example, say you bought a call, its price
will rise dollar for dollar with the stock if delta is 1, if the delta is
near to zero, even if the stock gap up, you would not see any up price in
option. Such position should be disposed asap. Delta of 0.5 has the max
time value with no intrinsic value. If trade is against your direction,
for every dollar of stock decline, option will fall by 50cts. Direction is
abstract if we can forecast direction accurately, buy simple call and put
will be neat, forget about other complex strategies in options. Then we
will enjoy the leverage in options, less outlay and high % return.
However, volatility could override greeks.
Best Regards
Freddie Ng
At 11:54 PM 4/7/2003 -0300, you wrote:
I actually didnt mention specific options
soft on account your request was related to metastock capabilities and
use for options, the best options soft is optionvue, or you can use the
web service of <A
href="">www.optionetics.com.
there is other site like <A
href="">www.IVolatility.com
forget about the greeks in my experience
they dont add anything crucial to your trading, but volatility is
crucial, this was the reason i used the ip/hv ratio when i was still
investing in options in the american market
mostly you must buy low volatility and sell
(or write) high volatility, but the problem is high or low comparing to
what, so i started to use the ratio to spot it fast, i dont have the
exact code for the ratio with me, but you can find the iv indicator on
metastock quick indicator list and for the hv i usethis
formula:
<FONT face=arial
size=2>Std(Log(C/Ref(C,-1)),10)/Std(Log(C/Ref(C,-1)),100)
make notice that while the implied is
calculated based on the option price the hv is calculated on the
underlying.
about the <FONT
face="Times New Roman, Times">group/industry ranked by their volatility,
you can find in the sites mentioned by me and debra that
infomation
i never used it but optionetics is very much
discussed and recommended inoptions boards and usenet groups, but as a
rule you should check the cboe site
Bye
----- Original Message -----
From: Freddie Ng
To: <A
href="">Metastockusers@xxxxxxxxxxxxxxx
Sent: Sunday, April 06, 2003 10:13 PM
Subject: Re: [Metastockusers] Stock Option
Pablo,
Appreciate your valuable systematic explanation. Those points that
you discussed were very important in option trading. If it can determine
or anticipate the correct underlying direction, this info can then be
used to interpret the option direction. Call follows underlying while
Put is reverse. I also understand that not all indicators are suitable
for each stock and Metastock can search and match the best indicator to
optimized profit, I wonder if I had missed out anything in Metastock for
option.
Volatility(implied and Historical)
Keen to know how you use these info to analyze the option. I am
aware that one can lost trade due to volatility. You mentioned about use
ratio of IV & HV, can you elaborate a little bit more. The option
volatility indicator is for IV, how do you obtain HV in Metastock.
Btw, do you have any good source where I can obtain the volatility
info. Is there any such listing of group/industry ranked by their
volatility.
Best Regards
Freddie Ng
At 04:07 AM 4/5/2003 -0300, you wrote:
Freddie,
on using metastock for options you have 2 problems
1 Data problem
2 analysis problem
1 since options trade for a short period, the problem arises, you
cannot
make any analysis for a while, there is 2 ways around it :
continuos
contracts (i tried them for a while , but they are not reliable in
my
opnion), the alternative is using intraday data, so even if you
can make
analysis on daily charts for a while, at least you can run
intraday an.
2 about the analysis:
you must keep an eye on the stock or whatever the option is for
then you can analyze the option itself by common tech an. tools
then you have to keep an eye on implied volaitity and hystorical
volatility,
for while i used a ratio between the implied volatility and
hystorical
volatility
check the quick drop indicator youll find some options
indicators
Pablo
----- Original Message -----
From: "freddie_ng" <n07476@xxxxxxxxxxxxxx>
To: <Metastockusers@xxxxxxxxxxxxxxx>
Sent: Saturday, April 05, 2003 2:00 AM
Subject: [Metastockusers] Stock Option
> Hi all Metastock experts,
>
> Can anyone enlighten me how to make use of Metastock to trade
on
> options. I own a Metastock ver 8.0, just recently upgraded
from v7.2.
>
> Best Regards
> Freddie Ng
>
>
>
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