- This topic has 3 replies, 3 voices, and was last updated 3 years, 10 months ago by .
Viewing 3 reply threads
Viewing 3 reply threads
- The topic ‘IV Average’ is closed to new replies.
Option Chain Indicator
|
Hello Sir,
As per my knowledge IV is basically %, means a ratio.
That means IV value can be represented in NUMERATOR/DENOMINATOR way.
My Question is if we have to average our IV we used to follow below formula
IV Avg=(IV1+IV2+….+IVn)/n
As suggested while calculating Delivery% we should not do average of any Ratio.
We should use formula like below
IV Avg=(NUM1+NUM2+…+NUMn)/(DENO1+DENO2+…+DENOn)
Request you to put some light on it, and tell us the exact method to calculate Avg IV or Weighted Avg IV.
From where you came to know iv is a ratio?
Check out nitin sir video. On option probability calculator.
As a thumb rule of any statistical analysis or mathematics, you cannot take average of percentage data points.