Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (733)	2/22/2003 9:20:53 PM
From: tyc:>	Read Replies (1) \| Respond to of 1064

I was "tickled" to figure out how to calculate current "historic volatility" from Bollinger Bands. Perhaps this is something everyone knows, so I will wait for someone to express interest before I give details. I continue with my pseudo short straddles. Options on Gold stocks like Agnico Eagle have a very high implied volatility. My calculated historic volatility (from bb's) is ` 22% while options imply about 60%. There are FIVE YEAR warrants available on this and other gold stocks... they provide excellent upside protection for short straddles etc. Indeed, I think they would be great for a Calendar spread long..... if you see what I mean. Just buy some warrants and forget 'em.