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Thorsten,
You are welcome!
My hat is off to you for taking the challenge of becoming a Financial
Risk Manager. To be effective in risk management or any other field
you should always remember the need to be well rounded. This would
include physical exercise for the mind as well as the body. Should be
a daily routine for all of us.
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "The Boy" <theboy@xxxx> wrote:
> Dear Preston,
>
> Thank you for making me smile :-)) ... yahduh, yahduh, ...
> I am studying for Financial Risk Manager... and I have to study all
this yahduh... it really drives me crazy...
>
> Best regards, and I wish you a nice day
>
> Thorsten
> ----- Original Message -----
> From: pumrysh
> To: equismetastock@xxxxxxxxxxxxxxx
> Sent: Monday, May 12, 2003 3:33 PM
> Subject: [EquisMetaStock Group] Re: Option Volatility
>
>
> chellester,
>
> Volatility is one of the biggest can of worms I've ever come
across!
> Is it implied, historical, annualized, percent, normalized,
> theoretical, yahduh, yahduh, yahduh? The huge differences that
you
> are experiencing are no surprise to me. Never assume anything!
Ask
> and see if you get an answer. If that fails you'll have to figure
the
> method by comparison. You might even try to write the various
methods
> in an expert commentary which would make it easier to call up the
> whole mess at once. In the end, don't give up on volatility. It
is
> far too important! Just takes a bit to wade through the method to
the
> madness.
>
>
> Preston
>
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "chellester2002"
<chelle@xxxx>
> wrote:
> > Hi, I'm currently reading "Option Volatility and Pricing", by
> Sheldon
> > Natenberg, and learning about - surprise surprise, option
> volatility.
> > One of the tactics it's currently talking about is finding
> > overprice/underpriced options based on the volatility.
> > Using OptionScope, if I input the volatility figure given using
the
> > option volatility indicator on a given share, and then input
the
> data
> > from actual prices, I'm getting huge differences in volatility,
> such
> > as a difference of 15, or 20 etc. Now supposedly thats what
I'm
> > meant to be looking for, but every share/option I've tested
this on
> > is giving substantial differences. - So - checking the
metastock
> help
> > files for calculating the volatility, it doesn't give
information
> on
> > the formula it uses. I'm assuming that it's using a lognormal
> > distribution as described in the book, but it really doesn't
say.
> Is
> > that where my difference might be? I've gone over and over all
the
> > other figures to input in the OptionScope, and they all seem
> correct.
> > Either I'm making errors somewhere, the whole market is
mispriced
> > (according to the theoretic price), or figures I'm using for
> > volatility must be wrong.
> > Has anyone come across this? Anyone have ideas?
> > Thanks
>
>
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