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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (67358)	11/14/2003 5:36:00 PM
From: shoreco	Read Replies (1) \| Respond to of 94695

mishedlo, I understand what you are saying, but here is a simple calculator that when you change the Volatility %, the "value" of the option rises or falls w/out any change in time or price of the underlying... In the column on the left simply change the Volatility % to any number and hit calculate... The example here shows the SPX calls are $6.79 and the puts are $8.53 with the current Volatility % of 12.2%... Simply change that to 30% and the calls go to $17.90 and the puts go to $19.66 w/out changing anything else... Therefore if the volatility index were much higher today, even if the prices were the same they would be worth so much more... Here's the calculator... ivolatility.com EOM Shoreco PS Another cool thing about this calculator is you can play with it and "predict" what the option value should when the underlying hits a desired price... This will help those who like to place option "limit" orders based on the underlying price targets...