1 Option Trade / Day

Discussion in 'Options' started by romSPG, Oct 25, 2010.

  1. romSPG

    romSPG

    Hello,

    I understand options, their pricing, the various spreads.. But I still have problems connecting some dots. Maybe you can help me.

    Hypothetically, if I know the std X for next day's range (i.e. next day's range will fall between +/- X with probability 68%) how can I capitalize on my knowledge of X?

    The same with monthly ranges is easy as for instance next month's iron condor at +/- X has positive expectancy at expiration. What about daily ranges?

    Thanks