Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits Dan Passarelli
Publisher: Wiley

Jul 20, 2008 - For example, let's say that Dell Computer is trading for $22.50. At 35 DTE the Given this, if you sell some relatively elevated volatility then you can make a lot of money in a very short time if the volatility comes out. Would have an intrinsic value of $2.50 ($22.50 – $20 = $2.50) because the option buyer can exercise his option to buy DELL shares @ $20 and then turn around and sell them at market for $22.50 thereby generating a profit of $2.50 per share. Mar 8, 2014 - Obviously, this is assuming all other factors are constant. A top options trader details a practical approach for pricing and trading options in any market condition. Here is a graph depicting the theta decay curve for OTM 10 delta SPX options with theoretical option prices starting at 98 DTE. Nov 23, 2013 - Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits (Bloomberg Financial). Jan 24, 2010 - How can accurate pricing drive profit? Notice how much steeper the curve is for both calls and puts from 98 DTE to around 35 DTE. Why do investors need to understand how time, volatility and pricing influence FX Options trading. The options market is always In the Second Edition of Trading Options Greeks, veteran options trader Dan Pasarelli puts these tools in perspective by offering fresh insights on option trading and valuation.