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Sorry to confuse you Norman, but there was haze covering the moon here in
Southern California. Really, implied volatility is just that, implied.
Sometimes implied prices become real prices. When the implied and the real
intersect there is a trend change in progress. That is the essence of that
chart, to use the implied input from the volatility index to determine what
the options market says prices should be, with the trend of current prices.
BobR
At 12:10 AM 11/20/97 -0800, nwinski wrote:
>bobrabcd wrote:
>>
>> Probability expectations for Thursday are trending in the directions of
>> some selling. The inner bands on the chart are the primary price targets
>> and zones for a one day move based on implied volatility. It is also
>> possible that the solid line and dotted line do not cross but diverge and
>> thus price continues to move up. But as of the close on Wednesday they were
>> converging implying some selling on Thursday is to be expected.
>>
>> BobR
>> http://www.oextrader.com/momentum/momentum.htm
>
>NW: Huh? I am not sure what you said, but I think because we have seen
>no panic on the upside and there was an increase in bears, on an up day,
>Wednesday, that it is probable that there is considerable more upside
>potential in the next day or two.
>
>Simply,
>
>Norman
>
>
>
>
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