Implied volatility
3-part forecast: underlining price, time, implied volatility
Put, call: put higher than fair value because big institution buys portfolio insurance; call lower than fair price because writing covered call.
Gamma: highest for near-term, at-the-money options.
time decay: only concern with time horizon of 2 weeks and lower; for 1~2 day trading, volatility plays bigger role.
time-spread: good % return, but exit partial as soon as you make good profit.
Vega is pretty linear for volatility
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