Chapter 36: The Basics of Volatility Trading 
FIGURE 36-7. 
Implied versus historical volatility of a stock. 
120 
110 
100 
90 
80 
70 
60 
50 
40 
30 
20 
10 
01-----------~~r:cr:1---
-10 "O 
-20 ~ 
-30"5" F M A M J J A S O N D-
Implied minus Actual 1999 
FIGURE 36-8. 
The price graph of the stock • 
... : ....... --: ......... : ·······.··········, ····-·-:· ....... : ........ ..; ... . 
······: ---:·······•: J. ...... 1 ....... ) ....... --) .... ----1 .).. ! .). 
······-·········-··· -.. ;..... : ...... ;.. . : ......... : .... . 
...... .: ......... : .......... : .......... : ....... , ......... •. 
..... ; ...... ) ....... .L.. ... .L .. Stock· Pri~e ..... ) ...... ) .. . 
·······'• ...... _.: ____ .... •. ·······:----
.•.•••• j ' . 
J F M A M J J A S 0 N D J 
1999 
Date 
27.000 
25.000 
23.000 
21.000 
19.000 
17.000 
15.000 
13.000 
11.000 
9.000 
7.000 
5.000 
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