Category: Options

24
Nov
thinkorswim Options Analysis

Gems from thinkorswim – Spread Hacker Terms

So I like to trade options and have recently switched to TD Ameritrade, who has a fairly robust desktop platform, thinkorswim. In fiddling around, the documentation is alright, but some of the terms and details are not really gone into, leaving you scratching your head. In the Spread Hacker section, I was curious about a […]

18
Jan

Probability of Touch

I was looking for a mathematical formula for the probability of a stock price touching a strike price of an option any time during it’s lifetime, assuming the stock price follows a traditional Black-Scholes model of Brownian Motion. I found some traction from from http://quant.stackexchange.com/questions/235/probability-of-touching, but unfortunately the equation did not seem to work according […]