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American Capital Agency Corp. Message Board

  • mrwizard9090 mrwizard9090 Apr 2, 2013 2:47 PM Flag

    implied volatility, part 2

    since the posting system stinks, i will continue with a new thread.

    i bought AGNC May 32 calls on March 25 for 0.67 per contract. the implied volatility was then in the mid 14's percent. historical volatlity was 21-ish.

    the IV continued to fall all of last week. as low as mid 11's. HV remained fairly constant. during that period, the options crossed the threshhold between OTM and ITM.

    today, the implied volatility is almost 15%. evidenced by a mere 4 cent decline in option price versus a 19 cent decline in AGNC(as of a little while ago). i still don't know what it all means, or even if it is tradable on a consistent basis.

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