11–13. Use Internet-Based Options Pricing Services
Any accounting or treasury staff that deals with options knows that this is a difficult area to analyze in terms of whether an options price is reasonable or excessive. One can now gain assistance in this effort by accessing the excellent www.ivolatility.com Web site. This site compares the historical volatility of a stock to its estimated activity for the next few months, as determined through an examination of options purchased. If the forward-looking volatility is greater than the historical volatility, then the options on that stock may be overpriced. The site also includes daily charts and statistics about market performance, as well as linkages to news sources for each selected stock.
Cost:
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