Posted on November 4, 2011, 9:27 am, by admin, under
Articles.
In option trading, there are many option strategies you can use. There are two basic options: call option and put option. Call contract will give the holder the right to buy an asset at a specific price or strike price. Put contract is the opposite. It gives the right to sell an asset at strike [...]
The Implied Volatility (IV) of Calls needs separate treatment from the IV of Puts. Also, for specific options trading strategies treat the IV of both Puts and Calls as a combined bundle.Each option at each strike implies its own individual percentage value of the underlying product’s future volatility. This makes it unique from any other [...]