Implied volatility on GLD?

[ratiogreg]

Is anyone trading GLD on a regular basis and can enlighten me on the behavior of the IV?

I found no correlation between the intraday standard deviation spikes of GLD and GVZ, its VIX-equivalent. It seems that IV goes up or down irrespectively of the direction of GLD, which makes it tough to play.

By simply looking at the charts, it seems that GVZ could move as a function of the volume of GLD or even the /ES.

Any thought?

[MatthewHaley]

Remember, IV is NOT always inversely correlated to an underlying ticker. It is a function of volatility, and with GLD the volatility is very high.

Matt

[ratiogreg]

Yep. In that case, no inverse correlation. Same with TLT it seems.
Nice to hear from you!

[MatthewHaley]

Good to be back. I think it is easy to remember Implied Volatility usually goes up with a falling stock because stocks fall faster, so the volatility is higher. But near earnings change (in either direction) is likely, and TLT lately and GLD, SLV and the like have also been moving very quickly.