December 18, 2019

Standard Deviation/Expected Move

One of the most powerful aspects of trading options is the leverage that they afford us.  In order to take advantage and maximize this leverage, we have to accurately target the correct price level.

How do we do that?  We use implied volatility and statistical calculations to target the probable move.  Remember, we trade in the world of probabilities not possibilities

Grab a free five day pass to Scott’s live signal trading room today: http://bit.ly/nl-freepass

about the author:

Scott Bauer

A respected market commentator seen on Bloomberg, Fox Business, CNBC and other major financial networks, Scott Bauer has 30+ years of professional equity and index options experience at the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) and as a Vice-President/trader for Goldman Sachs. Scott graduated with Honors from the University of Illinois Business School and has taught classes both at his alma mater and at the CBOE.

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