Using My Implied Volatility Calculator

The SPX finished 2014 +11.4% to 2080.35, declined -4.3% in Jan, and is +4.7% so far in Feb after significant headline volatility, most of which is Central Bank and EU related, with significant intraday volatility opportunities preceded by the “funny money” globex futures gyrations. If there is a market that is not fixed anymore please let me know.

The manipulated SPX made a cycle high on 12/29/14 at 2093.60, right on the 12/31/14 8.6 Pi cycle time period which is 2124 CD`s [247 x 8.6] from the 667 3/6/09 bear market low. In the previous commentary the 2400 CD`s was a mental typo in that 2400 CD`s, or 279 x 8.6, is the long term Pi cycle date of 2015.75, which is the first week in Oct and 8.6 years from the SPX 2007.15 topping cycle.

The SPX has since made a 1988.12 low on 1/16/15, 2064.62 high on 1/22, followed by the 1980.90 low on 2/2, before making another headline bounce to the 2088.48 intraday high on 2/12. The choppy price action and intraday volatility/travel range is obviously a significant bonus for day trading, provided you are familiar with using my Implied Volatility Calculator.

The Calculator is a powerful trading tool that enables you to calculate the Volatility Band/Standard Deviation levels each day that will enable you to identify trades with a positive mathematical expectation, due to the fact that markets get extended to extremes which results from crowd psychology, herd mentality, but they almost always revert to the mean. This is especially constant on an intraday basis.

I have included a snapshot of my IV CALC, and if you are interested in receiving one email me at I will also include the info on how/where to get the simple data needed, which is just the closing price and implied volatility number used to calculate the Volatility Bands.


Kevin Haggerty