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Market Measures

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Smaller Intraday Reversals

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

On any random day over 20 years, the chance of a 0.5% or greater move and a reversal same day (in either direction) is 20%.

Since the chance of a +/- 0.5% close is 52%, and the chance of a +/- 0.5% move and reversal that same day is 20%, then on any randomly chosen day it is around 2.5x as likely to see a +/- 0.5% close than a +/- 0.5% move AND a reversal.

Tune in as Tom and Tony discuss this information and talk through ways to use it when trading options.

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