| June 29, 2011 | ||
| 6:00 pm | to | 7:00 pm |
The Lentz Volatility Indicator seeks to answer a question currently on the minds of many non-directional option traders…
Should I be selling option premium right now?
Steve Lentz from DiscoverOptions has developed a tool that attempts to provide some guidance in answering this question.
It’s called the Lentz Volatility Indicator (LVI). To shed more light upon the LVI, what it is, and how it works I asked Steve to join us. During his one-hour presentation, he spoke to us about the LVI, the theory on which this indicator is based, and how a non-directional monthly income trader might use it to evaluate market conditions before opening a non-directional trade.
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The LVI can be programmed for use on many technical analysis platforms such as MetaStock or ThinkOrSwim, and it is now a standard indicator on OptionVue. During the presentation Steve Lentz provided the syntax to add the LVI to MetaStock. We have also posted the code to add the LVI to ThinkOrSwim’s charts in the Trading Room, where members may may download it and the instructions for installing the indicator.
Steve also provided an excellent discussion about volatility. That alone is worth taking the time to watch.
Christopher Smith
TheOptionClub.com
P.S. If you find this video helpful, consider joining us in the Trading Room. We host weekly live presentations and training sessions and are constantly working on refining our trading skills. It is a great way to learn the fundamentals about options and then build a more sophisticated understanding of how to use them.