Using the ADX to set up straddle trades: option straddles are known as...

Futures (Cedar Falls, Iowa);  July 1, 2004 ;     700+ words ......move. 2. The market should exhibit high implied volatility so inflated options premiums can be earned...environments conducive to shorting straddles. IMPLIED VOLATILITY Implied volatility is the volatility premium built into the...

The 'other' live cattle market: implied volatility. (includes related...

Futures (Cedar Falls, Iowa);  August 1, 1996 ;     700+ words ......underlying market) in terms of implied volatility. Rising volatility (above) shows the at-the-money implied volatility for August cattle options...compared to the futures bar chart. Implied volatility peaked at 28% April 26 when...

Expressed markets, implied filters. (implied volatility in the options...

Futures (Cedar Falls, Iowa);  November 1, 1993 ;     700+ words ......historical volatility looks backward, implied volatility from the options market can often...traders are at least acquainted with implied volatility. This measure, the volatility implied...traders are not acquainted with how implied volatility -- when used properly -- can ...

The predictive power of options.

Futures (Cedar Falls, Iowa);  April 15, 1996 ;     700+ words ......behavior of the options market - implied volatility patterns and put-call ratios - can...contrary indicators. Option prices or implied volatility When options are too cheap, too many...of options also are referred to as implied volatility, so the VIX in essence measures the...

Taming wild markets with long straddles. (Trading Techniques).

Futures (Cedar Falls, Iowa);  July 1, 2002 ;     700+ words ......historical volatility. Model behavior Implied volatility is calculated differently using several...option. A number of factors can drive implied volatility to extremes. For example, any type...fluctuate much from one day to the next, implied volatility can be quite low. Most options ...

EXECUTIVE VICE PRESIDENT KOS SPEAKS ON RECENT VOLATILITY TRENDS IN FOREIGN...

US Fed News Service, Including US State News;  May 11, 2006 ;     700+ words ......looking. An alternative measure, implied volatility, is extracted from options prices...on one-month at-the-money forward implied volatility. Over long periods, these two measures...shorter term realized and option-implied volatility may still remain low. Contrast that...

Sting in the tail; Buttonwood.

The Economist (US);  April 14, 2007 ;     700+ words ......Options Exchange's Vix, looks at implied volatility. This is backed out of option prices...eliminated is the mystery ingredient--implied volatility. The ever-inventive financial sector...the difference between realised and implied volatility. Investors can take part in a variance...

Playing volatility seasonality. (futures trading technique)

Futures (Cedar Falls, Iowa);  June 1, 1990 ;     509 words ......players are aware of the key role of implied volatility in trading. Oddly, little has been...volatility can be translated into the implied volatility of the options to some degree. An...1990 soybean futures settled with an implied volatility of about 13 while the September 1990...

The New Zealand implied volatility index.(Report)

New Zealand Economic Papers;  June 1, 2008 ;     700+ words ......the first exchange to introduce an implied volatility index, called the VIX. Based on a...many exchanges constructed similar implied volatility indices for risk hedging and portfolio...Exchange (DTB), which introduced an implied volatility index (VDAX) in 1994, the French...

Volatility movements the key to profit.

Australasian Business Intelligence;  August 19, 2002 ;     190 words ......traders. There is a high level of implied volatility in Australia at present. Volatility...assets on which derivatives are based. Implied volatility refers to the expected volatility...of AOT Stockbroking, notes that implied volatility has a more short-term focus. The...

Know thy volatility. (includes related article)

Futures (Cedar Falls, Iowa);  April 15, 1996 ;     700+ words ......historical volatility, above). Implied volatility, as its name suggests...used to converge on the implied volatility through a series of estimations...options traders defer to implied volatility over historical volatility...

A LONG-TERM MODEL OF THE DYNAMICS OF THE S&P500 IMPLIED VOLATILITY SURFACE

North American Actuarial Journal;  October 1, 2007 ;     700+ words ......describe a parametric model of the implied volatility surface for options with a term of...almost all of the variation in the implied volatility surface can be explained by the VIX...such set of factors, namely, the implied volatility surface for options on the S&...

Know thy volatility. (significance of volatility in option...

Futures (Cedar Falls, Iowa);  June 1, 1995 ;     700+ words ......historical volatility, above). Implied volatility, as its name suggests...used to converge on the implied volatility through a series of estimations...options traders defer to implied volatility over historical volatility...

Why options traders focus on volatility over price.

Futures (Cedar Falls, Iowa);  August 1, 1989 ;     700+ words ......volatility, not price direction. Implied volatility is the option market's opinion of...volatility is headed. Some compare how implied volatility tries to predict underlying volatility...a price-discovery function, then implied volatility performs a discovery function for...

When volcanoes erupt.

Financial Adviser;  August 16, 2007 ;     700+ words ......Exploiting the difference between implied volatility and actual volatility of market...options prices. This is called implied volatility. There are various indices which track implied volatility with the most well-known being...