View Model Price and Implied Volatility

The Model price and Imp. Vol. columns are displayed on the OptionTrader and in the Trading window. The values will initially display in white on the trading page. This signifies that the Option Modeler has not calculated any prices or implied volatilities. Once you open OptionTrader and load the appropriate chains, the model price will display in color. Data displayed in the Option Modeler is driven by the option chains in the OptionTrader.

To view the model price and implied volatility

1.  From the trading window, right-click in the column names and select Customize Layout.
   
   b) On the OptionTrader, right-click in the gray top section of the Option Chains area and select Configure Option Chains.
2.  

   a) In the Market Data Row list, check Model and Imp. Vol%, and click OK.
   
   b) In the Columns list, check Model and Imp. Vol%, and click OK.

3. View the model price in the Model field on the option's market data line.

4. View the implied volatility in the Imp. Vol(%) field on the option's market data line.

NOTES:

• Implied volatilities (in the Imp. Vol column) are always displayed in either pink or white. If either the Model or Imp Vol(%) values are displayed in white (as shown above), it means the model hasn't calculated any prices or implied volatilities.

• You can choose to view volatilities in either daily or annual percentage terms. On the Configure menu, select Misc and then select Volatility Units. Choose Daily or Yearly.

• The implied volatility is based on the average of the best bid and offer for an option.

• The implied volatility calculation is non-linear and may not converge for low vega options. In such cases, Interactive Analytics will not provide an implied volatility estimate.

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