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How to find value in options...
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thereaper
Posted 6/12/2019 15:23 (#7555252 - in reply to #7555178)
Subject: RE: How to find value in options...


Ol’ Wisco
The option market isn’t going to give you “signals” that forecast price movement. There are a lot of different metrics in these markets that can help you gauge and understand market sentiment, S&D aspects of certain price points, maturities, and others. What you will learn, if you crawl deep, deep, deep into the rat hole, of options, volatility, and option/volatility trading is that trading commodities on price is a losing game. Price is nothing more than an input value of a calculation to help you derive and understand where opportunities to make a highly probable winning trade are in the market. Also learning these things will help you understand, to some extent, how a large trading institution or yourself will calculate, evaluate, and manage risk of their/your portfolio.

Wiki and YouTube are by far the best resources to get started into basic, and intermediate understanding of option and volatility trading. Option Volatility and Pricing by Natenberg (spelling may be wrong) is a very wonky book but if you read a little and then google or YouTube some of the info in that book if it sounds like Greek to you, it will begin to make a little more sense.
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