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> What is the "Implied Volatility" of a stock that you can download with
> HISTORYBANK?
> I suspect it is the IV of the "at the money" options.
>
Cool. Who is using this to trade with? How do you use it? If the I.V. is
less than the actual vol. then you'd be better off owning options than the
stock outright? If the I.V. is greater than the actual vol. then you'd be
wise to sell covered calls? What's this I.V. used for?
The Omega Man
----- Original Message -----
From: cb <cpbow@xxxxxxxxxxxxx>
To: The Omega Man <editorial@xxxxxxxxxxxxx>
Cc: Omega List <omega-list@xxxxxxxxxx>
Sent: Sunday, June 13, 1999 10:07 AM
Subject: Re: HistoryBank / I.V.
> The Omega Man wrote:
> >
> > What is the "Implied Volatility" of a stock that you can download with
> > HISTORYBANK?
> >
> > Of course, implied volatility is a characteristic of options, not stocks
> > (nor any other underlying). The volatility of the underlying stock or
> > future is the ACTUAL volatility, not the implied vol.
> >
> > Anyone have any idea what they're referring to with the implied
volatility
> > they allow you to download for stocks? Maybe I need to send back the
> > McMillan and
> > Fontanills tapes they sent me so they can read up on options pricing...
> >
> > Good trading,
> >
> > The Omega Man
>
> I suspect it is the IV of the "at the money" options.
>
> Bridge EOD option data also provides a single IV number, one per futures
> contract each day. Altho I have not used that number much, I believe it
> is the at the money IV.
>
> Conrad Bowers
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