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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Boolish who wrote (42027)	4/4/2001 1:31:46 AM
From: Londo	Read Replies (3) \| Respond to 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.

To: Boolish who wrote (42027)	4/4/2001 3:18:22 AM
From: LTK007	Respond to of 56535

there are sites that will give computerized time decay figures,i know.But i should get down to learning to make my own calculations. no i don't trade canadian boolish but i have discovered on thing,if you trade in options that you simply have to buy at the ask and sell at the bid i suspect they are computerized and whenever i feel there bid ask are within reason i will go for it. i have never not had a trade not immediately(or a matter of a few minutes) go off at the bid(when selling) or ask (when buying) even if i am the ONLY one trading the option. once you are deep in the money you can't do better than fair value but when deep in the money who cares:)max