Options Trading Math 101

http://optionalpha.com - Welcome back to statistics class. Undoubtedly more important that understanding the Black Scholes model for pricing (which we purposely don't cover) is your ability to understand statistics and probabilities on a deep level. We would even venture to say that your understanding of the "math" behind our trading system is directly related to your success rate and end of the year profit. If you don't get the math behind the trades you will fail - guaranteed! Swallow your pride and head back to school with us as we talk in depth about standard deviations, probabilities and statistics in this advanced tutorial. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. Thanks a lot for this video, u break it down like a BOSS!
2. Which option chain are you using? Where can I find this Prob ITM field?
3. Thanks for this. Really well done. Subbed!
4. AWESOME ONE WORD AWESOME OUTSTANDING!!!!!!!!!!!!!!!!!!!!!
5. why sell options when vol is high, isnt there a higher chance the option gets exercised ? and we loose the premium?
6. Love statistical truths. Good video.
7. ACTUALLY informative. Not selling anything to you. Watch it.
8. How is the probability of ITM being calculated?
9. I never thought I would use my statistic class for trading. Thank you for your video. Extremely helpful.
10. This video is the best I've seen so far! Thank you!
11. Great presentation! Your clarity and well laid out graph made me understand how probability is used in options. Thank you.
12. did you buy the 209 calls in that example to limit the risk of your upside?
13. Thanks for your video. you are  really good teacher!
14. I guess I'm little confused but why if it's at 19% it's a higher probability?
15. Nice video!!!