Sorry if this is a basic question. But for the IV discount/premium in relation to historical RV
Which side of IV is it taking (i.e Call or Put IV)? Or is it skew dependent, i.e if Call Skew, selecting the highest IV Call? Or is IV just aggregated across all options regardless Call/Put?
typically when you see this in general, its at the money implied volatility. Myself and typically others don't overweight the call or put side without saying its skew because its not a pure premium, we are taking into account more of a specific strike.
Sorry if this is a basic question. But for the IV discount/premium in relation to historical RV
Which side of IV is it taking (i.e Call or Put IV)? Or is it skew dependent, i.e if Call Skew, selecting the highest IV Call? Or is IV just aggregated across all options regardless Call/Put?
good question
typically when you see this in general, its at the money implied volatility. Myself and typically others don't overweight the call or put side without saying its skew because its not a pure premium, we are taking into account more of a specific strike.
Thank you sir
Big fan from Singapore!
Thank you. How would you interpret this data and implement it into decision making?
Ask chatchpt that question in deepresearch and then circle back