I’ve read a few option books.
THANKS... This is probably the most comprehensive "greeks" article/book I’ve read.

Wonderful blog. …..
A wonder wealth of knowledge there. Thanks so much for your kindness in publishing it!

Thank you very much for the most concise and simplest option intro. Highly recommended.

So far, yours is the best blog/site on basic options notes in the web that I have chanced upon.

Thursday, August 23, 2007

How To Get Historical Volatility (HV) vs. Implied Volatility (IV) Information – Part 2

Go back to Part 1.

How To Get HV and IV Info (Cont’d)
3) optionistics.com.
This site provides some tools & data such as:

  • Option Chain: It provides IV as well as Options Greeks data (Delta, Gamma, Rho, Theta, and Vega) for various strike prices and expiration months (not only near ATM options).
  • Options Calculator & Probability Calculator.
  • Volatility Charts.
There are 2 types of Volatility Charts provided in this site (for 1 week, 1 month, 2 months and 3 months windows):

a) Stock Price vs. Implied Volatility (IV) chart.
This chart can be found under “Tools” >>“Stock Price History” at the left bar.
However, this chart shows no Historical Volatility (HV), and the longest window period of the chart is for 3 months only.

b) Option Price vs. IV chart.
This chart can be found under “Tools” >>“Option Price History” at the left bar.
The good thing about this chart is that it can provide the Option Theoretical Price & IV chart for various strike prices. As we’ll discuss further in the future, Implied Volatility (IV) does vary by strike price.
On top of that, you can also select (from the drop-down menu) other options greeks to be plotted with Option Theoretical Price in case you’d like to analyze the trend of each greeks during the selected period of time.
To get the chart, simply type in the Option Symbol (e.g. APVJV is the symbol for AAPL Oct 130 Call).

Pictures courtesy of: optionistics.com.

I’m sure there are many other websites that provides such information for free. In case you know one/s, please feel free to chip in. I’ll compile a list for the benefit of everyone. Thanks in advance. :)

Next topics:
What’s the relationship between Historical Volatility (HV) and Implied Volatility (IV)?
How to make use of the volatility info to determine if an option is expensive (overpriced) or cheap (underpriced)?
How to benefit from volatility changes? How does volatility affect our option strategy consideration?

We’ll talk about this further in the next posts. Have a nice day! :)

To understand more about Implied Volatility, go to: Understanding Implied Volatility (IV).

Related Topics:
* Trading Educational Videos You Should Not Miss
* Options Trading Basic – Part 1
* Options Trading Basic – Part 2
* Learning Charts Patterns
* Option Chain
* Option Greeks