Volatility Info & Graphs

[RichKid]

Hi folks,

I've been trying to find free sources of info for Volatility stats for Aussie markets. I know the ASX has some monthly stats for the major stocks but I can't find anything for the XJO, nor are there graphs that I can see for free on the web. The XJO volatility given by the ASX always seems to be 9, which can't be right as I'm sure it changes?? It makes it difficult for me to know when an option is ripe for buying.

If someone has the current volatility graphs for the XJO (from 200days to 30 and 5 days) could you please post it- it'll be very helpful- thanks!

I've been trying to use Bollinger Bands as a proxy but I'm not sure if it works as well.

This is all part of the learning curve for me, I don't want to get into options without knowing volatility parameters as everyone says it's important to option pricing. So without the volatility graphs I'm buying blind and maybe paying too much or not using the correct strategy.

Does this mean I have to buy some fancy options software and then update volatility data regularly?? If so where is such data available?

I've done google searches but haven't found much.

Thanks in advance!

PS I've attached an old XJO volatility graph that I found. It seems to suggest that volatility drops when the index is going up and spikes up when the xjo falls.

 

[dutchie]

Rich

I have been searching for the same thing too. Theres plenty of info on volatility on US markets. I suppose thats one of the reasons why Wayne trades US options.

 

[DTM]

Interesting chart Rich

Looks like Volatility has bottomed out and building up energy to explode up. Look how it keeps hitting the bottom but not dropping any further, movement is within a small range suggesting to me that pressure is building to go up.

Just my two bobs worth.

Nice chart, where did you get it from or how I could find it.

Thanks in advance

 

[RichKid]

Dutchie/DTM,

Firstly, I think I've made a mistake. If the XJO options are priced according to the SPI contract then we should be looking for SPI volatility- I just remembered that point (ie that the SPI is the underlying NOT the XJO). But then again I may be missing something and it may be the XJO!!?? This options stuff is more confusing than I thought. So the XJO options series is an option over a futures contract (SPI) rather than the value of the XJO?? Or maybe I've got my concepts mixed up.

I found the chart via google, try 'XJO and volatility'. It's from an options article on the ASX site. IT IS NOT CURRENT! So don't use it to trade, it ends around Nov 2004.

I'd also like to add that it is very silly to name an options series that tracks the SPI with the code for the XJO!! Why not 'SPIJ4' or 'SPIJJ' or something like that (instead of 'XJOJ4' or 'XJOJJ'). So basically these 'index' options appear to have little to do with the XJO Index apart from the fact that the SPI is derived from the expected value of the XJO. Aaarghh!!

Wayne, Synapse, Pos or anyone else maybe one of you experts can help us out here please.

 

[RichKid]

Do any of the CFD or share traders out there know if any of the major providers have free implied and historical volatility graphs as part of their free charting/trading platforms?

Sails was kind enough to post a chart here off webIress but I have a feeling it costs some. Haven't found any solutions from browsing the sites yet.

If some broker/CFD platforms have free volatility data and graphs I'll sign up just to use that info- as long as I don't have to open a bank ac for them.

Thanks in advance.

 

[phoenixrising]

RK, check out www.rpsw.com

I bookmarked the site a while ago, not really doing options yet so haven't checked it out. Seems they do a basic free service while trying to sell there advanced software ( surprise,surprise ). Includes ASX.

Anyway worth a look.

Cheers

 

[RichKid]

RK, check out www.rpsw.com

I bookmarked the site a while ago, not really doing options yet so haven't checked it out. Seems they do a basic free service while trying to sell there advanced software ( surprise,surprise ). Includes ASX.

Anyway worth a look.

Cheers

Thanks very much phoenix, I think I tried them a few months ago but they use Yahoo data and Yahoo often changes the way the data is updated so the programme didn't work at the time, I sent them an email but no reply. I'll try again, maybe it's improved. Thanks again!

 

[happytrader]

Hi there Richkid

I'm not really sure what you are asking for but if you were wanting to look at graphical depictions of price movements in all time frames of any particular option, you might like to check out www.boursedata.com.au and get your free 14 day trial. Also you might like to check out www.ffi.com.au for info on the XJO. Just hit investor resources link and then index options and that will give you all the XJO features. Lots of other quality freebies there too.

Cheers
Happytrader

 

[SuperTed]

http://www.rpsw.com/index.html

I have used Open Interest version 4 for several yrs. Has the graphs yr talking about plus a scenarios feature you can play around with.

I always cross check with the asx website for valuations and volatility. Yr broker will be able to tell u fair value as well (so you dont get reemed in an illiquid series).

Bourse is good but many of its features are free within comsec pro trader software (as long as you do one option trade per 1/4). Comsec Protrader has a valuation calculator built in as well showing volatility etc

 

[RichKid]

http://www.rpsw.com/index.html

I have used Open Interest version 4 for several yrs. Has the graphs yr talking about plus a scenarios feature you can play around with.

Is that the free version? Thanks for the help!

 

[SuperTed]

No i used the free version initially and trialled the full version (4) at the same time to compare.

I decided to buy the full version 4 (one off payment) because of the speed at which you can analyse the whole series of options >> searching for overpriced or underpriced options. This pricing is the key/secret to trading the aussie market in my opinion (especially if yr sucker for illiquid options ;-). Incidently thats why i view the expensive option software packages as overkill, ie optionview.

The $400 (with canadian conversion at the time) is irrelevant because this software is a simple fast tool of the trade. I am probably biased because of my good experiences using it and the speed at which the canadian guy gives support (asx data patches)