Is Black-Scholes the Right Option for Options?
- Thread starter McCloud
- Start date
Quote from T-REX:
In order to be an effective trader of Options you must 1st master the underlining Futures and or Stock you are trading and have a full understanding of where the market is headed.
Example: If you believe that the ES is going up then you can buy the Sept 1170 Call on the Big S&P 500.
If you believe that the ES is going to fall then you can either sell the Sept 1170 Call on the Big S&P 500 or simply buy a Sept 1050 Put.
There are a few more good alternatives and strike prices but I thing you get the point and I did not us BS to determine the above.
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Chasinfla;
My read is Black -Scholes has helped make a nobel prize amount of money for the sellers in a sideways trend;
however thats why i still like dividend paying stocks also- can make a little bit in a sideways trend without selling much .
Like Alford E. Newman said '' what me worry???'';
would focus on things i like to research & occasionaly trade -index options.
