Trader J's Inner Circle Message Board

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Strategies & Market Trends : Trader J's Inner Circle

NVDA 178.94

-0.9%

Nov 21 9:30 AM EST

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To: Boolish who wrote (42027)	4/4/2001 1:31:46 AM
From: Londo	Read Replies (3) of 56535

I have been searching for information on a more precise calculation of time decay but have found very little resources. I'd suggest reading about the Black-Scholes model, and the formula behind it. Take a look at this web page.. bradley.edu. FYI, a standard normal distribution is a gaussian, i.e. (2Pi(S^2))^-1 * exp[(-(x-m)^2)/(2*S^2))], where S is your standard deviation, and m is your mean. Easy to punch it into excel and start modelling option curves.

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