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Brokers and web sites calculate historic implied volatility in different ways so you'll see some variance in the numbers that each provides. However, this isn't critical because there will be consistency at each location since the same formula will be used at that site. There are two sites that I use for reference. The first is IVolatility.com which is ...


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My understanding is that vega will tell me how much my option price will change per 1% change in IV. My question now is, what does "1% change in IV" means. Is it an absolute 1% change, or a 1% change from the start point? IV change is absolute. If it expands from .20 to .21 then it has increased by 1% Implied volatility is very high now so trading from ...


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Each option has its own implied volatility. There are a number of option pricing models so I would assume that it's possible that there may be mild variance in the calculation via each one. I've used Black Scholes for about 30 years so I don't know to what degree it varies from model to model. There are also a number of ways to calculate the average ...


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What draws people to stocks in the first place is that it's not a zero sum game. Stocks grow when the economy grows. When someone buys a $900 iPhone, the profits add to the value of AAPL stock. It's like a reverse casino. In a normal casino if you play the slots 10,000 times spending $10,000, you will gave gotten back an average of $9700. With the stock ...


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With options, time is not on your side because they depreciate. They are a race against time. Investing is hard enough but making money with options is even harder. I only trade options a few times per year only to make an extra 3-5% alpha per year. Options are priced so you only make money if the stock price moves MORE than the expected return. This ...


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Deep ITM options near expiration have very little time premium. They also tend to have very wide B/A spreads. Combine the two and you can have data distortion. YUMC = $37.21 7/17 $27.50 call is $9.20 x $10.40 The intrinsic value of this $27.50 call is $9.81 Your data provider is using the midpoint of the quote for calculating implied volatility. In this ...


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