Comment on Basics on Options Shorting/Writing

yash commented on 15 Jun 2014, 11:54 PM


You can try here for the calculation….just fill in all the details and the Calculator would use Black Scholes Formula to calculate implied volatility

For interest rate you can put in 8% or so…(interest rate would not substantially effect the calculation tho!)

Its best to use a calculator, coz applying the Black Scholes model is really time consuming, also there is not direct way of calculating Implied Volatility (i.e we can only get implied volatility by TRIAL & ERROR, using the option price and the formula by assuming the implied volatility each time…only when you use the correct implied volatility, would the black scholes throw up the current market price of the option )

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