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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Chris Jensen who wrote (1325)	3/2/1998 8:18:00 PM
From: Sal D	Respond to of 29382

justguessing, 1)What is a volatility rating? My mistake I should have said implied volatility. Implied volatility is the markets consensus of what the volatility should be (consiering the given option price) 2)How did you calculate the implied volatility for NRL? I was justguessing (just kidding). Actualy I dont know exactly how its calculated I have a options program that does the calculations for me based on the known information I enter in the data worksheet witch works like a spreedsheet. Once I give it the known information it calculates the implied volatility for me then I can use diffrent calculation dates and stock price projections using the implied volatility number it gave me in my first calculation for future projections. Joe P.S. The program also calculates Delta, Vaga, Gamma and Theta to see the sensitivity of the option to changes in market conditions.