Tuesday, July 12

Single-digit Implied Volatility

Implied volatility (yellow line) on the OEX is now down below 10. It generally goes lower as the market moves up, and higher when prices move down.

But at this low level the daily drip of decay is more bearable to option-buyers as they wait for the next big move.


Scott said...

You seem smart. Could you splain volatility to me. Thank you

Matias said...

Coming soon, to a blog near you!