Using Standard Deviation & Probability To Trade Options
Posted on June 28, 2012 at 09:41 AM EDT
I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must understand in order to make use of this helpful metric include: The prices of any given underlying can be considered to be distributed in [...]

I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must understand in order to make use of this helpful metric include:

The prices of any given underlying can be considered to be distributed in a Gaussian distribution- the classic bell shaped curve.
The width of the spread of these prices is reflected in the standard deviation of the individual … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards


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