Options Playbook 5: Volatility and Probability, Continued

Published: April 3, 2014, 8:48 p.m.

Options Playbook 5:\xa0 Volatility and Probability, Continued\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0

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For those of you playing the home game, we\u2019re on pages 14-17 today.\xa0 Or, for the online version, check out, \u201cWhat Is Volatility?\u201d

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In this episode, Brian continues the discussion of volatility and probability.\xa0 In this episode, he covers different timeframes beyond one-year options.\xa0 How does a one standard deviation move affect prices for short-term options (30, 60, and 90-day options)? There\u2019s a formula for that!\xa0 Options move at the square root of time.

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Options involve risk. Please refer to\xa0tradeking.com/ODD\xa0to review additional risks involved with trading options.