brian....
i know of no websites for implied volatility calculations, perhaps some on the thread may offer such a link.
in essence, implied volatility is the volatility percentage which the market forces of supply and demand have agreed on in determining the current market price of the option. it can be derived by working the black-scholes model in reverse. i believe bittman does this with his "op-val" software.
the only problem i have with all the great books and software available for options trading is that they are more in tune with an orderly market. with such a fast moving market that exists, the implied volatility on a stock that ranges +/- 10% intraday changes faster then you can calculate.
best recommendation i can give, based on experience is to narrow down the number of stocks you want to follow. become intimate with the price action, learn to use a simple slow stochastic momentum indicator, and watch for a transition of the k and d lines. this basic no brainer technical indicator will get you close enough to overbought or oversold conditions. use this with your intimate knowledge of the underlying. unlike some on the thread who boast of selling puts with a stock setting new highs, this is pure folly and disaster, even if you want to own the stock.
at the moment my feb positions are brcm260,qcom120,and closed lu55 last week. these positions were set about two weeks ago and will expire worthless. march i'm positioned in jdsu165,jdsu200,cpq25, i'll look for more positions at next weeks expiration. expiration days can create aberrations in stock price, at times inflate the implied volatility, and if you are familiar with a normalized premium, then you can take advantage of the moment.
good luck ed a. |
