Is iv skew the result of an error in the Black-Scholes model...

samuel11 said:
The way I look at it is that the market priced a 20-point move for the week, and it ended up being 26 points.
More...
Predicting the future and discovering a fair price to assign to risk are two completely different endeavors.
 
Sorry, I don't have blanket responses to trading questions that will not depend on current market conditions or will be the "best" answer that fits every trader. In fact, I was never a naked option seller or credit spread seller. I made markets to current market conditions, current prices and supply/demand. I rarely came in to trade with an agenda.
 
Know your weapons..... In some situations an otm call will do better then a short put....this is the beautiful part of options a taylored expression to your desire
 
You must log in or register to reply here.
Back
Top