Options Trading Tutorial

optionschart20090922a jpg

optionschart20090922a jpg

Summary: be easily observed that the volatility has come down significantly If the I V is low then the option premium tends to be fairly priced The next figure shows the option chain for SPY Figure 2 SPY option chain In Figure 2 one can observe that the spread between the Bid and Ask is very thin which means two things The product is extremely liquid and also popular

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Image originally found here.