Quote:
Originally Posted by prasxz
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Hypothetical results for hit half hour before the news (touch) 257.78 with 200 invested, net 57.78.
But 15 minutes before the news we did not set the hit option below the price because there was not payment offered. Market is smart. Also, if we had choose "miss" (not touch) we only had losers, -200.
That's why it's hard to me understand how to set the boxes 15 minutes before the news.
As experience I know options needs to be traded with enough time before the strike/barried price. A couple of hours before for intraday or better a couple of days before.
Otherwise the volatility will be fully included within the option and we don't have money to collect.
Initial options tutorial.