Recent content by Giri89

Hi, I have heard on many occasions people recommending to sell options when IV is high which I have a few questions about. Firstly, are they referring to the sale of naked options? If not, and they are referring to spread strategies such as credit put spreads for example, won't the higher...

Hi Martinghoul, I would very much appreciate if you could me give me the long answer Haha =D. Also do you think it would be worthwhile learning the mathematics behind option pricing? I was looking through Hull's Derivatives book (which we used at university) and noticed there was some quite...

Hi MartinGhoul, I'm thinking about that and it's hard to say. The reasoning behind my forecast is purely technical but going by averages, I would say around $1 daily.The stock is currently trading in a channel so my estimate of $1 arose by dividing the difference between the high and low prices...

Hi guys, I just thought of something else that I would like to find out. If I have an expectation that a stock will move to a particular price within a designated time, is there a way of calculating a volatility that is consistent with that prediction? Using the example stated above - if I...

Awesome.. thanks a lot man.

Hey guys, Thanks for the responses. I'm still having some trouble understating how to use the formula you provided Martinghoul. I did as follows: d1= [ln(84.80/90) + (r + 0.445^2/2)(28) ] / (0.445 * 28^0.5) for r I used 0.03/100 - is that an appropriate number to use? I just got it as the...

Hi Guys, Could anyone tell me how I would work out the % chance of a stock being above/below a price by DEC expiration given some number for volatility? More specifically, a stock is currently trading at 84.80 and its 90Call option has an IV of 44.50. So if anyone could help me calculate what...

Hi guys, I have a question about the IV component in options. I have a view on what I believe will be the IV on an option for a particular stock which will be expiring shortly. If i believe that the stock will fall and that IV will be 25% for the remaining life of the option, should I be trying...

Hi Guys, I have noticed that many trading firms hire candidates who have a strong background in mathematics. This leads to my question of how important is having a mathematical background in securing a job as a trader? I have been thinking of pursuing further studies in this area but wanted to...