Are Option Probabilities B.S.?
Listen now
Description
One of the attractions of trading options is the idea that you can create trades with varying degrees of probabilities of profit. In this episode, I put the option probabilities that the trading platforms give us to the test by doing a 10year backtest. The focus is on comparing both the call and put side to see if over a long term period of time, if the probabilities play out as expected. As a bonus, listeners can view the studies discussed in this episode over on the community website in the Podcast section. Here's the direct link: https://www.stockmarketoptionstrading.net/topics/4369023 Also, for those interested in generating income up to 3 times per week trading SPX 0DTE spreads, check out the SPX Masterclass and Community. Now with a live chat feed to see what trades members are taking in real time. Here's the link to the Course: https://www.stockmarketoptionstrading.net/all-courses Thanks for listening and supporting independent research on this show.
More Episodes
In this episode, I'll briefly explain what options net flow is. In short, many of the options flow providers now offer some version of options net flow which is a graphical way to gauge the options sentiment of a stock or index. I find this mush more useful and applicable compare to the...
Published 04/15/24
Published 04/15/24
In this episode, I got to speak to Mat Cashman, Principal of Investor Education at OCC. Mat takes us through the life cycle of an options trade by explaining the inner workings of the market and some of the players and institutions that make it all possible. One of those institutions is the OCC...
Published 03/28/24