Best (and ONLY) Options Trading Strategies that Every Options Trader Must Know (Beginner Tutorial)12/24/2018 So, for example, if there's very high implied volatility that instead of receiving a dollar twenty a share, I'm gon na receive a dollar sixty and those statistics that you're quoted about, like you know the standard deviations and the probability of profit they're, inherently very inaccurate. One standard deviation, they'll tell you that your if you sell a put option, that's one standard deviation away. It tells you that it should expire worthless, 68 % of the time, but the reality is, it doesn't around. It expires worthless, like 72 or 73 percent.
So you have to make a judgment, call and not rely upon indicators, and all of the information is reflected in the amount of premium that you're going to receive. So you essentially just make a decision and say: okay am I do I think it's a good trade for me to agree to buy Facebook at 1:58 and do I think that me being compensated a dollar 20. A share is worth the risk that I'm taking to buy Facebook at 1:58 when it's now trading at 172. That'S pretty much what the question that you ask yourself! If the answer is no, then you wait for this dollar 20. A share to increase to a dollar 40. If the answer is yes and you make a trade all right, that's how we make money the stock more. This is David Jaffee from BestStockStrategy.com BestStockStrategy.com. If you have any questions, let me know you can go to the website and sign up for free training. You can also sign up for the best trade alerts available. All of my students are profitable. It'S only nineteen dollars for a seven day trial and please, like comment share subscribe. If you have any questions, leave them in the comment section below. I respond to every single comment once again, this is David Jaffee and thank you very much.
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