Truth or Skepticism Podcast

Get Tom and Dylan's take on bonds, the future of investing, and more.

Listen Now

The Skinny On Options Math

Directional Assumptions In An Efficient Market

The Skinny On Options Math

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

When we are looking to place a trade, we may have a directional assumption on the underlying. We can use these directional plays in order to offset some delta risk or is an underlying has had a large move.

Today, Tom Sosnoff and Tony Battista are joined by Jacob Perlman as he discusses these type of trades in an efficient market. The guys discuss how the law of large numbers tells us that the more we do something, the closer the results will be to what is expected. However, Jacob makes the point and explains the math around the fact that this convergence to the mean can be very slow.

The Skinny On Options Math More installments

See All »

Latest tastytrade Videos As of May 22

Most Shared From the last 30 days