I was just thinking about price movement and the use some of us make of ATR which considers historic price move.
This led me into IV, which is another way to express the "market" expectation of price movement in the future, kind of leading information, which I expect to be more precise in the forecasting business while setting a new trade.
Going into IV, there are many versions, the one for a specific combination of option type, put or call, strike and expiration and you will also find one associated with the stock which is some kind of combination of those previous combinations.
Since those that trade options need to focus on the former type of IV, I am wondering if our wonderful and resourceful coders can create an indicator that picks historic IV and construct a bands indicator based on that info, like we have the Bollinger or Keltner Bands. Maybe something like it already exists here but I am unaware. In any case, this allows for a lot of creativity on how to implement a well as what kind of information we can extract and use from it.
In any case, thanks for taking the time to consider it.
This led me into IV, which is another way to express the "market" expectation of price movement in the future, kind of leading information, which I expect to be more precise in the forecasting business while setting a new trade.
Going into IV, there are many versions, the one for a specific combination of option type, put or call, strike and expiration and you will also find one associated with the stock which is some kind of combination of those previous combinations.
Since those that trade options need to focus on the former type of IV, I am wondering if our wonderful and resourceful coders can create an indicator that picks historic IV and construct a bands indicator based on that info, like we have the Bollinger or Keltner Bands. Maybe something like it already exists here but I am unaware. In any case, this allows for a lot of creativity on how to implement a well as what kind of information we can extract and use from it.
In any case, thanks for taking the time to consider it.
