For futures options traders, MRCI provides these 3 volatility charts for ALL the major commodity markets and updates them daily on our MRCI Online subscriber website!
These volatility charts offer not only visual comparison of current levels of volatility with the historical norm but also perspective on when volatility tends to rise or fall throughout the year --- all important for futures options traders trying to decide if and when to buy or sell premium.
Please click on the below links to view a SAMPLE of each chart.
1. Daily Volatility Charts
2. Weekly Volatility Charts
3. Monthly Volatility Charts
Click here to also view a SAMPLE of our "Daily Volatility Numbers Report". These daily numerical updates are automatically emailed to MRCI Online subscribers per their request.
MRCI Online subscribers can automatically receive a copy of this report via email each night, (approximately 5PM PST). To join this list, click here.
Used correctly, seasonal tendencies can be a powerful tool for options traders.
Chart Legend:
- the green line represents the 15 year central tendency of 20 day historical volatility
- the blue lines represent 1 standard deviation from the central tendency
- the red line represents the implied volatility
- the magenta line represents the current markets 20 day historical volatility
- The daily chart above displays the average historical volatility (and one standard deviation in each direction). At any given point on this line, volatility has been found above half the time, and below half the time, on average. Historical volatility has traditionally been found between the two outside bands 68% of the time. When overlaid with current implied volatilty we are able to distinguish those levels that fall outside the historical norm, creating a reference point regarding current option market prices.