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Low IV Scan on Platinum Essentials

By Clare White, CMT, Optionetics.com | Tue October 30, 2012 10:22AM PT

 

Platinum Essentials provides ranking tools that can quickly provide stocks with high [expensive] and low [cheap] relative implied volatility [IV] levels that van then be saved into a Platinum Stock List for strategy scans.

Here are the steps for creating a stock list with IV that is cheap over the last month:

Go to the Platinum Essentials Home screen and click, “Volatility Rankings”.

 

fig 1 home 

Scan the left side of the screen and select the IV timeframe of interest (here Implied Volatility, Cheap: 1 month & 2 month):

 

fig 2 list

The following was returned on Mon October 29, 2012 (markets closed due to storm) when you select Cheap: 1 mo:

 

fig 3 listing 

As a last step, you may want to save the stock list so it can be used with one of Platinum’s Find Trades tool.

 

fig 4 save

 

When using these quick tools for finding potential candidates, keep the following in mind:

  • Check the IV chart to assess actual IV conditions
  • Check the stock chart to assess reson for low IV

In terms of the stock chart check, a jump in price followed y what seems like a constant price, check the news for a possible merger or acquisition involving the stock. This is one of the most common reasons a stock will come up in a low IV scan, but expectations are for IV to stay low.

 

 

Clare White, CMT
Contributing Writer and Options Strategist
Optionetics.com ~ Your Options Education Site

Questions for Clare? Please visit the discussion board on the homepage of Optionetics.com.

 


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