Explore Your Options | NOV 2003
Explore Your Options by Tom Gentile
Explore Your Options by Tom Gentile VOLATILITY How do I figure out which strategies are best to implement when the volatility of the market changes so drastically from one season to the next? Fortunately for option traders, volatility is your friend, provided you understand just what strategies to use. Though the duration of each trend can be difficult to predict, periods of high or low volatility can be assessed by looking at a chart of the VIX (the volatility index from the Chicago Board Options Exchange) at any given time on most charting programs. The VIX has traded in an average range between 20 and 35 since 1997. Prior to that, the range was much lower, characteristic of the economic conditions of the underlying markets. (The VIX will have undergone changes after this column goes to press that better reflect market sentiment. The true range of 20–35 may vary slightly relative to the new formulas used to calculate the VIX.)
by Tom Gentile
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.