How to build an prospect screener for straddles?
I am looking for screening parameter I may use to select underlying stocks that would be honest candidate for long straddles (long christen & put at same strike price).
For example, I can peak the following parameter:
Stock criteria:
Price,Avg. Volume,P/E, Dividend %, historical volatility
Option criteria:
ending price, volume, exp month, intrinsic appeal, unstop int, implied volatility
... and the document go on, assume for sake of answer than I can sort on any factor
Answers:
Well if you're long on phone and put option, your best friend is volatility. The plea is that you want the price to rework dramatically, you don't keeping which mode it go, as long as it go. Therefore, price volatility is your knob metric.
Volatility usually comes near giant volume, but I intuitively would use the volatility surrounded by the volume as opposing only just volume. Using purely volume, will place companies close to Lucent and Norton ahead of adjectives others, although their prices are relatively stable. Volatility contained by the volume cause huge swings in the price; for an example, look at Taser three years ago.
16 years hoary and entail financial direction?
Should companies within duplicate industry enjoy approximately same required rate of return on investment projects?
Is Forex tading one and only the instrument to convert $1000 to $1Million ? Are here other avenues to craft some speedy bucks?
What is public private equity?
Fund-raising?
For example, I can peak the following parameter:
Stock criteria:
Price,Avg. Volume,P/E, Dividend %, historical volatility
Option criteria:
ending price, volume, exp month, intrinsic appeal, unstop int, implied volatility
... and the document go on, assume for sake of answer than I can sort on any factor
Answers:
Well if you're long on phone and put option, your best friend is volatility. The plea is that you want the price to rework dramatically, you don't keeping which mode it go, as long as it go. Therefore, price volatility is your knob metric.
Volatility usually comes near giant volume, but I intuitively would use the volatility surrounded by the volume as opposing only just volume. Using purely volume, will place companies close to Lucent and Norton ahead of adjectives others, although their prices are relatively stable. Volatility contained by the volume cause huge swings in the price; for an example, look at Taser three years ago.