Wednesday, March 16, 2011

Implied Volatility Now Greater Than Fair Value


- Implied Volatility Index mean, as reported by IVolatility.com closed at 24.84%, which is now above my Fair Volatility Estimate indicator's value of 22.25. Obviously, implied volatility can go higher, but I believe it is time to take some profits on long options, long volatility position I recommended getting into two weeks ago when IV Index mean was 15.3%, and even couple days ago when IV Index mean was 17.5%.

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