Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: niceguy767 who wrote (107937)	4/26/2000 10:13:00 AM
From: that_crazy_doug	Read Replies (1) of 1574253

<< Options pricing is based upon the Black Scholes model. About 15 years ago I obtained a copy of the formula and worked with it for about a year on my Atari 1040ST...Like you have outlined, there are several determinants in the formula, so you plugged in different variables such as volatility, days to expiry etc...It was certainly a worthwhile exercise working with the model as it provided insight as to how options pricing is determined...I would suspect that the Black Scholes model could be found on the web! >> Well my program really isn't about option pricing, per se, you can just use it to quickly find out at what price some options become more valuable than others. (Or I should say, I'm not interested in trying to find the fair price or best price like the Black Scholes would be, I'm just interested in finding what price I have to hit for option A to be worth more than B). As for my AMD strategy, so far I'm mostly using a strategy of buying the farthest out of the money options that are 6 months away that I can.

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