The " Holy Grail Syndrome "

[DanPickUp]

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[DanPickUp]

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[DanPickUp]

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[DanPickUp]

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[DanPickUp]

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[DanPickUp]

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[DanPickUp]

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[bloodmoney]

Hy

If you are an option trader, you surely would like to know the fair value price of your option. When I place limit orders, I calculate the fair value price of the option and reduce it a little bit.

Why ?

There is the bid and ask. The market makers live from that spread. If I reduce the price a little bit when I place the order, the market maker still has some space and he is more willing to fill my orders, when it comes to the point.

For example : 8 bid and 9 ask.

You will have to pay the ask price because the market makers wont let you take away their one point spread. You make a limit order with 8.5, means you scalp and you go in the middle.

Here the link :

http://www.optionvueresearch.com/we...y=++5.00&Yield=++0.00&IntRate=++2.00&x=22&y=8

Regard and good trading

DanPickUp

DanPickUp Bro,

Could you please explain the below terms in the above link and how can we derive at those terms..

--> Volatility
--> Dividend Yield
--> Risk-Free Interest Rate

It would be very helpful to understand it well.

Thanks in advance

 

[DanPickUp]

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[DanPickUp]

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