"Never bet on a long shot." -Frank "Lefty" Rosenthal
He is just assuming a Gaussing distribution of prices, and uses the mean historic volatility of a given lookback period as input. Trading like...
How to predicte the future from past data! Obviously, I'm being sarcastic, but that is what TA is all about. I'd really like to hear some...
I doubt that you will get 2:1 returns except for outright long positions (no spreads.) The problem then is that strikes with a 70% (delta 0.3)...
A lot of people calculate probabilities when deciding which strike to consider, but has anyone here traded options based on payoff instead?...
Short Calendar spreads seem to have alot of the characteristics that suite my trading style. However, when I look at equity spreads with say 3-6...
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