What makes some options premiums worth so much more than others? Let’s say we have two stocks, A and B. Both are trading @ $25/share. We look to sell the same month A-T-M $25 strike and one (stock A) returns 2% and the other (stock B) 4%. WHY? The answer lies predominently in the mysterious world of implied [...]
Entries Tagged as 'historical volatility'
Implied Volatility and our Option Premiums
November 29th, 2009 · 42 Comments
Tags: Cashing in on Covered Calls · S&P 500 · VIX · economic news · historical volatility · implied volatility · intrinsic value · standard deviation · time value


