Hi Anna. On your “trading plan” web page, http://www.trading-plan.co.uk/options-trading-plan.htm you’ve cited as part of the straddle setup: IV current > HV past HV current < HV past IV current > IV past Should it not be written as IV current < HV Past and IV current < IV past???? We are looking for an expansion in volatility to help our straddle position, so hopefully our IV values are starting out LOWER than recent history not greater when we buy the options. Regards, Jennifer
Hi Jennifer Gosh – well spotted – you are absolutely right. I will go and change it now. I’m not quite sure how that error managed to creep in and I have also checked the straddles site to make sure it is right there ( which it is) – apologies and thank you for pointing it out. I will be amending it straight away. I hope it didn’t confuse too much. All best wishes and many thanks once again – kind regards Anna
February 22nd, 2009 at 1:25 pm