Mohan bhai.... i've been wondering how best I can answer you. I realize that you have may have not read whatever I have mentioned in the morning because you have pretty much repeated in your last post what I was saying in the morning with added details of Black-scholes model. While for me, this has not been a game of one-upmanship, you & I are both aware of the knowledge we had at the time of starting this discussion. I will concede defeat. You win, i lose.
I hope to have more discussions with you in the future. Lets enjoy the India/pak match with plenty of KF lite
I hope to have more discussions with you in the future. Lets enjoy the India/pak match with plenty of KF lite
Bhai,
I read your posts again, and here I am pasting some parts of it along with post no.
1) 62188:
Yesterday's IV is now HV. Cant compare today's IV with yesterdays HV.
Yesterday's IV is now HV. Cant compare today's IV with yesterdays HV.
2) 62209
mohan.sic : except the similarity in the names, implied volatility has nothing to do with historical volatility.
Riskyman: Is exactly what I was saying too comparing today's IV with yesterdays is futile
mohan.sic : except the similarity in the names, implied volatility has nothing to do with historical volatility.
Riskyman: Is exactly what I was saying too comparing today's IV with yesterdays is futile
3) 62221
Volatility measures a stock's fluctuation. Implied volatility is a measure of this fluctuation expressed as a percentage.
Volatility measures a stock's fluctuation. Implied volatility is a measure of this fluctuation expressed as a percentage.
My answer is, your above 3 assumptions are wrong and below are reasons.
1& 2) HV & IV are completely different. Previous IV numbers will not become todays HV.
HV is used to denote actual volatility that occurred in Nifty and it is calculated from actual Nifty spot movements. Where as IV is a part of option premium and it is calculated from Option Prices. Therefore, both are different and hence Previous days options IV numbers cannot be called as HV.
3) IV is not stocks volatility expressed as percentage. Please refer to my previous post for explanation on iv.
I will not comment on one-upmanship, win/lose part. But if there is any prize, let me know & I will send my address..