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How can we identify whether a stock option’s Implied Volatility(IV) is high or low (unlike Index IV,

Updated: Oct 22, 2017

In order to determine whether options are high or low on a volatility-basis, you need to look at its past history.


Just because an option has a 50% implied volatility (which is pretty high for a “normal” stock), doesn’t necessarily mean it’s high.


What if this stock’s options usually carry a 70% volatility? Then that current 50% volatility would be really cheap and could offer some bargains.


You need to find software or a website that calculates past volatility levels in which you could compare one against the other.


Larry McMillan’s website has exactly what you need here: Free weekly implied volatility, historical volatility and volatility percentile data


This is great free information and should help you with what you need.

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