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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?


To: Tom K. who wrote (941)1/23/2000 11:46:00 PM
From: taxman  Respond to of 1235
 
all true except that no one knows what future volatility will be so everyone in the world has a different opinion--kind of like what should the price earnings ratio on dell be. i mean you know the earnings.

it is true you know past volatility for any given time period but options do trade at more, less than or the same as historical volatility. the implied volatility can change during the day and is not fixed or locked to where it was at the opening.

regards



To: Tom K. who wrote (941)1/24/2000 12:40:00 AM
From: OX  Respond to of 1235
 
IV changes w/ every trade and/or bid/ask quote change in the underlying. that's the very definition of IV.

it helps to pay attention to volatility in general as the old saying is "sell high volatility, buy low volatility"