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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (51060)	8/28/1998 2:59:00 PM
From: Lee	Read Replies (2) \| Respond to of 58727

Lisa,..Re:<<VIX>> cboe.com:80/index/spx/spxdata.html VIX click on VIX on left side for chart. Shows how it increases nicely during sell-offs. There are three basic measures of volatility: Future (anticipated) volatility is unknown but forecasts can be constructed. Historical volatility is the actual volatility measured over a specific period of time. Implied volatility is derived mathematically from recorded premiums by solving an option pricing model with known variables such as index value, strike price, dividend payments and interest rates (carrying costs) until expiration. Interestingly, historical and implied volatility are often used to estimate future volatility, which might then be used as an input to option pricing models. Used for collecting max premium by selling puts after a big sell-off or selling calls when we've done a big rally. Hope this helps Lee