Monday, July 18th, 2016

Options: Undervalued options?

? Hi, I been looking at m? Multiple strategies, and they all revolve around the underlying trend and volatility impl? Cita.1. Is it feasible formulation? Of a strategy of buying undervalued options? Qu? model is better to use? Binomial or Black Scholes? 2. “C” Mo “extended? Trade” options? Thanks, sorry if these are issues very b? SICAS

Comments

3 Responses to “Options: Undervalued options?”
  1. rawwwrrr says:

    no u

  2. James says:

    Unlike stocks, there really isn’t such thing as an “undervalued option”. You will almost never find an option that will ask below what its supposed to be worth because no market maker will sell such an option in the first place.

    Options spreads are creative use of the building blocks of options (long call, long put, short call, short put) to produce positions with specific payout profiles in order to take advantage of specific outlooks.

    You might want to check out the free references below for more details.

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