Module: IB::Volatility
- Extended by:
- OrderPrototype
- Defined in:
- lib/ib/order_prototypes/volatility.rb
Overview
Class Method Summary
collapse
aliases, alternative_parameters, defaults, optional, order, parameters, requirements
Class Method Details
.aliases ⇒ Object
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# File 'lib/ib/order_prototypes/volatility.rb', line 17
def aliases
super.merge volatility: :volatility_percent
end
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.defaults ⇒ Object
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# File 'lib/ib/order_prototypes/volatility.rb', line 8
def defaults
{ order_type: :volatility, volatility_type: 2 } end
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.requirements ⇒ Object
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# File 'lib/ib/order_prototypes/volatility.rb', line 13
def requirements
super.merge volatility: "the desired Option implied Vola (in %)"
end
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.summary ⇒ Object
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# File 'lib/ib/order_prototypes/volatility.rb', line 21
def summary
<<-HERE
Investors are able to create and enter Volatility-type orders for options and combinations
rather than price orders. Option traders may wish to trade and position for movements in the
price of the option determined by its implied volatility. Because implied volatility is a key
determinant of the premium on an option, traders position in specific contract months in an
effort to take advantage of perceived changes in implied volatility arising before, during or
after earnings or when company specific or broad market volatility is predicted to change.
In order to create a Volatility order, clients must first create a Volatility Trader page from
the Trading Tools menu and as they enter option contracts, premiums will display in percentage
terms rather than premium. The buy/sell process is the same as for regular orders priced in
premium terms except that the client can limit the volatility level they are willing to pay or receive.
--------
Products: FOP, OPT
HERE
end
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