Black Scholes Equation

Discussion in 'Options' started by lasner, Feb 3, 2010.

  1. erol

    erol

    I'm gonna say +1 on thinkorswim

    plugging values into a formula is one thing

    charting and playing with the sensitivities is another.
     
    #21     Feb 4, 2010
  2. dsss27

    dsss27

    www.samoasky.com
     
    #22     Feb 5, 2010
  3. jnbadger

    jnbadger

    Based on this, it's safe to say the thread is a joke, or the OP can't tie his own shoes and could never trade options anyway.
     
    #23     Feb 5, 2010
  4. Carl K

    Carl K

    #24     Feb 5, 2010
  5. Carl K

    Carl K

    Sorry I missed this on the last post.
    http://xfraniatte.free.fr/BSphp.php3

    Espen Haug also includes code for programing in Excel and says,
    " What about taking Black-Scholes in your head instead?
    If the option is about at-the-money-forward and it is a short time
    to maturity then you can use the following approximation:"
    call = put = StockPrice * 0.4 * volatility * Sqrt( Time )

    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1012075

    Carl
     
    #25     Feb 5, 2010
  6. optionable

    optionable Guest

    In my experience, I have had little luck or understanding the practical application of the Black Scholes Equation.

    Personally I have learnt a lot more from traders who work with options on a daily bases as opposed to the more theory, academia based crowd.

    Hope this helps.

    (P.S. There is a lot of good advice on these boards btw.)
     
    #26     Feb 5, 2010
  7. lasner

    lasner

    Carl...Thanks Man...I appreciate it
     
    #27     Feb 5, 2010