Volatility Workshop allows you to adjust the characteristics of an options implied volatility curve and review how those adjustments affect the theoretical values of either individual option or a portfolio of options. You can modify either the implied volatility for a single options series or the entire volatility curve.
Volatility Workshop displays actual, current implied volatility (IV) points. These are calculated using the method selected from the Volatility tab in the Preferences for Volatility Workshop window. Each option's IV is indicated by:
•a colored circle, if the series has not traded today,
•an up triangle, indicating an increase in the option's IV, or
•a down triangle, indicating a decrease in the option's IV.
•User-created, corrected IV points. An up arrow indicates a volatility
that has been adjusted upward. A down arrow indicates a volatility that has been
adjusted downward. Select different colors to distinguish between current, old
and stale volatility points.
Click here for information on the Volatility
Workshop color window.
•Up arrows, down arrows or circles indicate if today's volatility is greater than, less than or equal to yesterday's.
•A volatility curve constructed from user-adjusted points.
•Yesterday's implied volatility curve.
In addition, the display shows a vertical line in the user-selected color at the current underlying price.
To open Volatility Workshop, click the VolWS button on the toolbar. If the button is not displayed, click the More button, and then click Volatility Workshop. You can also click the Options button and then click Volatility Workshop.
Volatility Workshop is available through CQG’s advanced options package.