I have put $300 into a broker and all setup to have a mess around with some options. I put this in about 6 weeks ago. Then I started developing an app to track stocks, the idea was that I would learn about the stock market as I am implementing charts, indicators and what not. I learned a little but mostly I have just built the app that I wanted to make. I am still looking to learn more about the stock market. In the future when I feel like I have a plan, I will put some trades on. But in the mean time I am building out this app. I have attached screenshot of an old version of the app, current version I am working on is alot more flexible. The app is totally flexible in terms of what can be done with it in future development. For now it just tracks stocks with visual aids that are totally customisable. charts, data feeds, snapshots etc.. I am about 3/4 the way through building the latest draft of the app. It is something that I intent to get a community behind to help with ideas for the app and to help me become a begginer options teader and hopefully make some money from trading options.
Hi, it is looking good. When you trade options the chart on the underlying is not really giving you much. What is useful is to have a risk profile of your strategy, as in what would happen if the price goes in certain direction. Then you can measure expected volatility vs probability of winning the trade. Something like this: https://www.optiontradingpedia.com/option_trading_risk_graphs.htm
thanks... I have used 2D risk profiles to understand option combo Risks and Targets... but never the 3D.. Have you found those to be any better at helping understand risk profile and/or profit potential ?
The key is that any risk profile that we look at is true while volatility is within a range. When we draw a expected graph of potential returns we consider that the market is going to stay within a range of volatility. Simply because it would be hard to plot a third dimension on that chart, including the volatility variable. In theory the actual premium amount accounts expected changes in volatility, so you still can use a 2D graph of risk and targets, that does not include volatility for expected returns, and be accurate. There are works trying measure prices in a different way: https://www.sciencedirect.com/science/article/abs/pii/S0304405X16000052