Feb 9, 2019 | Investment Basics, Option Trading Basics, Technical Analysis
Implied volatility is a key concept for covered call writers and put-sellers. It is a forecast of the underlying stock’s volatility as implied by option prices in the marketplace. In 2012, I published an article relating to implied volatility where volatility...
Oct 20, 2012 | Option Trading Basics, Options Calculations
In covered call writing, our option premiums are influenced by the volatility of the underlying security. Using the Black Scholes option pricing model, we can calculate the volatility of the underlying by entering the market prices for the options. Common sense would...
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