Market Measures - July 11, 2018 - Directional Trading and Price Extremes

published 1 week ago by tastytrade, Inc.

How do naked short options perform after large price movements and at price extremes? Let’s compare selling naked options into multiple days of trading in one direction to a large weekly move. The tastytrade Research Department used 45 DTE options t...

So today we're talking about directional trading and price extremes on this the peace I think you're really gonna like it's we're going to back off a little bit on on heavy option stuff today read talk about just market direction for a second and talk about kind of you know we make the case that markets are random. And we like to think that when you see price extreme in whatever causes that prices from will and we understand that there is an emotional aspect to trading in that there's you know even though we we say everything's random there could be. Some bands of intense whatever it is or opinions that that can push a stock one way or the other who cares but can ultimately the question is if markets are truly random then things will probably normalize quicker than you think so let's take a look at what happens when we get to ...

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