Zulu89
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Ive been trading options on futures contracts for about 6 months, how i use them is as follows if the underlying future is rallying and it reaches a level and im too scared to sell it, ill buy a put and vice versa. I figured as long as the future goes the way i want it to go it doesnt really matter what price i pay for my puts/calls. Now im increasing worried that i might now be getting maximum value, so now im interested in how options are priced and how traders use this information.
All the literature i read is quite academic in nature and i suspect a lot of the information can only really be used by market makers.
Although i understand the definitions of the various greeks i dont use them at all with the exception of delta i guess, just to gauge market sentiment.
Im wondering what pricing model i should consider taking an in depth look at( which one is most widely used)
All the literature i read is quite academic in nature and i suspect a lot of the information can only really be used by market makers.
Although i understand the definitions of the various greeks i dont use them at all with the exception of delta i guess, just to gauge market sentiment.
Im wondering what pricing model i should consider taking an in depth look at( which one is most widely used)
