The Magic Of Time Value by Jesse Chen
ARTICLE SYNOPSIS ...The Magic Of Time Value by Jesse Chen
With this simple method you can sort
through various option spreads and
find the best conversion spread.
Too often in the world of option
analysis, simple indicators
for more advanced mathematical
models. Traders always try to
stay delta-neutral or rack in maximum
theta. Option gurus tout exotic option
spreads, which monitor positive gamma
vega and theta convergences.
These Black Scholes?based greek
and volatility formulas can be very powerful
tools if used correctly. Otherwise,
the trader could end up being overwhelmed
by the number crun...