Put option pricing formula de velocidad


As an alternative to writing covered calls, one can enter a bull call spread for a similar profit potential but with significantly less capital requirement. In place of holding the underlying stock in the covered call strategy, the alternative.. [Read on.]

Options Pricing: Put/Call Parity - Investopedia

The short put is naked if the put option writer did not short the obligated quantity of the underlying security when the put option is sold. The naked put writing strategy is used when the investor is bullish on the underlying.

Option Price Calculation and formula - Nifty Trader's

Note: While we have covered the use of this strategy with reference to stock options, the long put is equally applicable using ETF options, index options as well as options on futures.

Binary Options Pricing | Binary Risk Analysis & Options

Thanks this site is very helpful.

Could you clarify one thing - assuming equity movements are skewed to the downside, would skew alter the delta of a put option vs a call option (. would the delta of an out-of-the money put option be further from zero than a similarly out-of-the money call option?)

Chris

Long Put Explained | Online Option Trading Guide

Enter up to 5 option/stock positions, current price, volatility target and target percentage profit. The calculator determines the probability (using Monte Carlo modeling) of obtaining your profit target and plots the price vs profit graph of the position. Also calculates the current implied volatilities of the options in the position and your up and down side break-even points. You should use this calculator when volatility trading before ever placing an order. If it tells you your probability is low, then that is a trade you should forget.

Note: There is also the function in Excel, which is the same as with fixed mean = 5 and standard_dev = 6 (therefore you enter only two parameters: x and cumulative). You can use either I’m just more used to , which provides greater flexibility.

Instead of purchasing put options, one can also sell (write) them for a profit. Put option writers, also known as sellers, sell put options with the hope that they expire worthless so that they can pocket the premiums. Selling puts, or put writing, involves more risk but can be profitable if done properly.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

Here's another example of why a lot of people trade put options. If you bought a 655 shares of Apple Computer (AAPL) at $55 many years ago and you are afraid the price might drop temporarily, yet you want to hold onto AAPL for the long term, you should buy a put option.

I notice that on the vega page you write that the vega represents the THEORETICAL change in the option price/ change in volatility.

Does the same go for the delta? Is it only theoretical since the change in price is assuming hte market is using BS to price the option?

Thank you,



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