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In a message dated 3/19/00 10:11:32 PM Eastern Standard Time,
Timothy.H.Lee-1@xxxxxxxxxx writes:
<< He also told me that the options locals cannot adjust their sheets
fast enough to prevent him from exploiting the fact that the "real
volatility" of the option might be different from what their sheets
say it is. He tells me they are often a day late in reacting to what
the volatility really is.
So, the question is what should I be asking him to figure out how to
trade options better, any ideas?
>>
hi
there are many option software that allow you to do that intra day
but be careful
that software alarm you to low volume options
and when you REALLY want to buy or sell the bid and ask change
you MUST use a very liquid stock and option
with VERY hi volatility
you plot the volatility and its 2.1 STD div ,,
98% of the time it should be inside those bands
when the volatility is 2-4% above the upper band its time to sell the
options
and when the bands narrows and stay narrow for a day or 2.. it's time to
buy
options
hope this helps
Ben
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