Delta as a Probability in Options Trading
1.3 هزار بار بازدید -
8 ماه پیش
-
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00:00 - Introduction
Overview of the video
Purpose: Discussing the use of Delta as the probability of an option being in the money at expiration
01:00 - Practical Application
Example using Nvidia options chain
Calculating Delta and its probability
03:00 - Understanding Delta
Explanation of Delta as an approximation
Comparison with ThinkerSwim platform probability
04:30 - Mathematical Background
Introduction to the math behind Delta
Explanation of the Black-Scholes model and its inputs
06:30 - Detailed Calculation of Delta
Components of the Delta calculation
Understanding cumulative density function (CDF)
08:00 - Calculating Probability
How to calculate the probability of an option being in the money
Comparison between Delta and actual probability calculations
10:00 - Accuracy of Delta Over Time
Analysis of Delta accuracy at different time frames
Example with 37 DTE and 128 DTE options
12:00 - Key Observations
Importance of understanding the limitations of Delta
Impact of time on Delta's accuracy
14:00 - Practical Example and Calculation
Step-by-step calculation using current Nvidia figures
Comparison with ThinkerSwim and Delta calculations
16:00 - Final Thoughts and Conclusion
Summary of key points
Encouragement to use accurate methods for probability calculation
Invitation for viewer feedback and questions
▬ EVENTS ▬▬▬▬▬▬▬▬▬▬▬▬
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► 50% off ORATS Options Trading Platform, Backtesting, & More: https://orats.com/esinvests
► 50% off Options Omega Backtesting: https://optionomega.com/register/esin...
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▬ VIDEO DETAILS ▬▬▬▬▬▬▬▬▬
#trading #stockmarket #optionstrading
▬ ABOUT ERIK ▬▬▬▬▬▬▬▬▬
My name is Erik, I'm a Marine veteran, options trader, real estate and angel investor. From 2007, I spent over 30,000 hours honing my skillset and became a first generation millionaire before 30. I'm is passionate about self-development, life experiences, human performance, and helping others grow. I launched the esInvests YouTube channel and the Outlier community to share his experience and empower others to proactively craft their futures.
DISCLAIMER:
The content presented is for informational purposes only and should not be considered as financial advice. esInvests, its affiliates, and employees are not responsible for any investment decisions made based on the information presented in these videos. All investment and trading activities involve risk, and viewers should carefully consider their financial situation, investment goals, and risk tolerance before making any investment decisions.
Any opinions, news, research, analyses, or other information contained in these videos are provided as general market commentary and do not constitute investment advice. esInvests does not guarantee the accuracy, completeness, or reliability of any information presented in these videos and is not liable for any losses or damages arising from the use of or reliance on this information. Viewers are encouraged to seek professional financial advice from a licensed investment advisor before making any investment decisions.
By accessing and watching these videos, viewers acknowledge and agree to these disclosures and terms of use.
💡 Join the FREE Outlier Community Discord. Discord: discord
📈 Join the Outlier Patreon for exclusive content & to support the channel: weekly workshops, templates, trade reviews, & more. Patreon: erik_esinvests
📻 Listen to the Outlier Podcast. The Outlier Trading Podcast
ℹ️ Free Compound Interest Calculator: https://www.esinvests.com/resources
🔎Learn About Erik & the Outlier Community. https://www.esinvests.com
🦅 Follow on Twitter for Investing News & Stock Market Updates. Twitter: esInvests
00:00 - Introduction
Overview of the video
Purpose: Discussing the use of Delta as the probability of an option being in the money at expiration
01:00 - Practical Application
Example using Nvidia options chain
Calculating Delta and its probability
03:00 - Understanding Delta
Explanation of Delta as an approximation
Comparison with ThinkerSwim platform probability
04:30 - Mathematical Background
Introduction to the math behind Delta
Explanation of the Black-Scholes model and its inputs
06:30 - Detailed Calculation of Delta
Components of the Delta calculation
Understanding cumulative density function (CDF)
08:00 - Calculating Probability
How to calculate the probability of an option being in the money
Comparison between Delta and actual probability calculations
10:00 - Accuracy of Delta Over Time
Analysis of Delta accuracy at different time frames
Example with 37 DTE and 128 DTE options
12:00 - Key Observations
Importance of understanding the limitations of Delta
Impact of time on Delta's accuracy
14:00 - Practical Example and Calculation
Step-by-step calculation using current Nvidia figures
Comparison with ThinkerSwim and Delta calculations
16:00 - Final Thoughts and Conclusion
Summary of key points
Encouragement to use accurate methods for probability calculation
Invitation for viewer feedback and questions
▬ EVENTS ▬▬▬▬▬▬▬▬▬▬▬▬
►Weekly Monday Night YouTube Live - 5pm PT
►Weekly Patreon Q&A - Discord
►Monthly Outlier Investing Workshop - 1st Week Monthly Announced via Twitter, Discord, Email
►Monthly 1on1 Giveaway - 1st Monthly Announced on Twitter and YouTube
▬ AFFILIATES ▬▬▬▬▬▬▬▬▬▬
► 50% off ORATS Options Trading Platform, Backtesting, & More: https://orats.com/esinvests
► 50% off Options Omega Backtesting: https://optionomega.com/register/esin...
► Barchart Premium - Try for FREE: https://www.barchart.com/get-barchart...
► Benzinga Pro - Get 35% Off using Promo Code esInvests35: https://benzinga.sjv.io/esin
►Signup to Financial Juice for the Latest Market News - https://rl110.isrefer.com/go/SETH/esi...
► Grab Some Outlier Merch: https://esinvests-shop.fourthwall.com
▬ VIDEO DETAILS ▬▬▬▬▬▬▬▬▬
#trading #stockmarket #optionstrading
▬ ABOUT ERIK ▬▬▬▬▬▬▬▬▬
My name is Erik, I'm a Marine veteran, options trader, real estate and angel investor. From 2007, I spent over 30,000 hours honing my skillset and became a first generation millionaire before 30. I'm is passionate about self-development, life experiences, human performance, and helping others grow. I launched the esInvests YouTube channel and the Outlier community to share his experience and empower others to proactively craft their futures.
DISCLAIMER:
The content presented is for informational purposes only and should not be considered as financial advice. esInvests, its affiliates, and employees are not responsible for any investment decisions made based on the information presented in these videos. All investment and trading activities involve risk, and viewers should carefully consider their financial situation, investment goals, and risk tolerance before making any investment decisions.
Any opinions, news, research, analyses, or other information contained in these videos are provided as general market commentary and do not constitute investment advice. esInvests does not guarantee the accuracy, completeness, or reliability of any information presented in these videos and is not liable for any losses or damages arising from the use of or reliance on this information. Viewers are encouraged to seek professional financial advice from a licensed investment advisor before making any investment decisions.
By accessing and watching these videos, viewers acknowledge and agree to these disclosures and terms of use.
8 ماه پیش
در تاریخ 1402/11/07 منتشر شده
است.
1,320
بـار بازدید شده