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Chapter 36: The Basics of Volatility Trading
FIGURE 36-7.
Implied versus historical volatility of a stock.
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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
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5.000
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