Displays the Implied Volatility, which is usually calculated from options, but here is calculated indirectly from spot price directly, either using a model or model-free using the VIXfix.
The model-free VIXfix based approach can detect times of high volatility, which usually coincides with panic and hence lowest prices. Inversely, the model-based approach can...
This HV/IV indicator helps you to select an opt Option Strategy. It creates 5 areas & each area defines the present status of the option premium, which varies from Very Low to Very High. From the bottom, (Option Premium is)
Area 1. Very Low
Area 2. Low
Area 3. Fair
Area 4. High
Area 5. Very High
Find which area, current Implied Volatility (User Input) belongs in...