One of the advantages of an option based approach to trading is the ability to capitalize on trades that have a statistically well-defined high probability of profit. When events occur with predictable regularity, the knowledgeable option trader can effectively increase his odds of success. One of the most reliable and reproducible … [Read more...] about Trading Options Around Earnings Releases, Part I
One measure of risk that is common for option traders is to use standard deviations of movement. I built a popular Standard deviation calculator to calculate the range of movement for a given set of numbers. It was accessed nearly 500 times in the past week! An option trader can also use Delta to estimate the probability that an … [Read more...] about Is Your Trade As Safe As You Think It Is?
Dan Harvey has a spreadsheet he uses to help guide his contract sizes and manage his Weirdor trades. I extracted the option Greeks portion of it and created an online version which is at http://capitaldiscussions.com/option-position-greeks-calculator Here's a screen shot of it: As the instructions say, you just enter in the price … [Read more...] about Option Position Greeks Calculator Online
I posted in the forums about seting up OptionVue correctly to get the correct greeks for VIX options. Jim sent me an interesting link to six figure investing's article on "Thirteen Things Your Should Know About Trading VIX Options." Bullet point number four says "The option greeks for VIX options (e.g. Implied Volatility, Delta, … [Read more...] about Are your Greeks correct for VIX options?