Comments on: Implied Volatility And Our Premium Exchange-Traded Funds (ETF) Report https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/ Learn how to invest by selling stock options. Wed, 05 Feb 2014 00:07:50 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/#comment-18384 Wed, 05 Feb 2014 00:07:50 +0000 http://www.thebluecollarinvestor.com/?p=9258#comment-18384 In reply to Steve Z.

Steve,

Thanks for weighing in on this…a point worth considering.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/#comment-18377 Mon, 03 Feb 2014 02:00:24 +0000 http://www.thebluecollarinvestor.com/?p=9258#comment-18377 In reply to Richard Bishop.

Hi Richard,

Good t hear from you and I hope to see you later this year when i return to Milwaukee for 2 presentations. There are many ways to trade options in general and the same holds true for covered
call writing, a strategy most appealing to conservsative investors. My motivation for including this information in our ETF reports was because a few of our members prefer low IV securities. Others prefer high IV securities. One size does not fit all. I’m happy to provde the information and each investor can make a decision based on his overall market assessment and personal risk tolerance.

Alan

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By: Richard Bishop https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/#comment-18376 Sun, 02 Feb 2014 23:52:27 +0000 http://www.thebluecollarinvestor.com/?p=9258#comment-18376 In reply to Alan Ellman.

Alan
I appreciate your thoughts on IV but if you follow TOS as a trading platform or Tastytrade.com you would find that the IV percentile is one of the most important things to know about trading options. TOS has the IV percentile readily available and there is a way through Tastytrade to put that number on your charts. Tastytrade has done studies showing the importance of trading only high IV percentile stocks and ETFs.
Thanks for your weekly videos and discussions. (You and I met in Milwaukee in 2013 at the AAII meeting and you had lunch at our table).
Richard

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By: Barry B https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/#comment-18375 Sun, 02 Feb 2014 23:18:12 +0000 http://www.thebluecollarinvestor.com/?p=9258#comment-18375 Premium Members:

This week’s Weekly Stock Screen And Watch List has been revised and uploaded to The Blue Collar Investor premium member site and is available in the “Reports” section. The ETF entries on page 1 have been corrected. Look for the report dated 01-31-14-REVA.

Best,

Barry and the BCI Team

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By: Steve Z https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/#comment-18373 Sun, 02 Feb 2014 17:21:14 +0000 http://www.thebluecollarinvestor.com/?p=9258#comment-18373 Alan, sounds like a good addition to the reports.

Per your article, there may be an additional point to be made regarding IV. For an ETF (or an individual stock), its normal IV can be high or low relative to other ETFs as you’ve pointed out. However, it can also be high or low relative to its own normal range.

Because IV may be more “mean reverting” than price, knowing where an ETF’s IV is relative to its normal range is probably as actionable and maybe even more actionable than knowing where it is relative to other ETFs. Food for thought.

Steve

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By: Alan Ellman https://www.thebluecollarinvestor.com/implied-volatility-and-our-premium-exchange-traded-funds-etf-report/#comment-18364 Sat, 01 Feb 2014 13:23:09 +0000 http://www.thebluecollarinvestor.com/?p=9258#comment-18364 My World Money Show seminar:

Thanks to our BCI members for attending my presentation last night (Tom, thanks for taking the pictures). It was my pleasure meeting you in person. Hope to meet many more of you in NY in February.

Alan

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