This is a “cut-to-the-chase” solution oriented task to find out if your chosen golden asset is volatile enough to make it a profitable option choice and what is its correlation to similar assets within its sector/classification?
Take the past history of the “asset” for the last 40 days (it’s metaphysical) from Google or Yahoo finance’s prices.
Paste into an excel spreadsheet workbook. Copy only the close price and paste into the second spreadsheet. Leave an empty cell above so you can put in the ticker symbol
Next to the price column, starting on the second cell below the first price, put in the Excel =stdev(First Price;Second Price) formula.
Fill out the remaining cells to obtain the standard deviations.
Take the “Line Graph” and use “Lines Only”.
Fill in the graph with the STDEV outcomes.
Here’s an example comparison between AAPL and IBM.
The blue line is AAPL and IBM is the orange line. My take away is that IBM and AAPL would be a good selection for a portfolio. Why? They are diversified enough as you can see, they nearly move in opposite directions that translates into protecting your asset allocated profits. IBM surprisingly to me is more volatile so there might be more option premium volatility versus AAPL. This is something I’ll need to look into.
Meanwhile, keep the excel spreadsheet handy. You can check just one asset to get a reality check on its percentage moves and volatility characteristics that will save you a lot of headache in tying up your occurrences with marginal volatility.