Options Playbook 5: Volatility and Probability, Continued
Apr 03, 2014•18 min
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Episode description
Options Playbook 5: Volatility and Probability, Continued
For those of you playing the home game, we’re on pages 14-17 today. Or, for the online version, check out, “What Is Volatility?”
In this episode, Brian continues the discussion of volatility and probability. In this episode, he covers different timeframes beyond one-year options. How does a one standard deviation move affect prices for short-term options (30, 60, and 90-day options)? There’s a formula for that! Options move at the square root of time.
Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.
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