Official Let's Make Some Money Off Stocks Thread
08-27-2008, 11:19 AM
#752
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Originally Posted by magician,Aug 26 2008, 08:24 PM
Not to put too fine a point on it, but the word's "portfolio".
08-27-2008, 11:20 AM
#753
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when using the black-scholes option pricing model, what are consider the standard values for the standard deviation and the risk-free rate? i usually use the 10yrs treasury bond rate for the risk-free rate and the implied volitility as the standard deviation.
08-27-2008, 12:16 PM
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Originally Posted by Khoa,Aug 27 2008, 11:20 AM
when using the black-scholes option pricing model, what are consider the standard values for the standard deviation and the risk-free rate? i usually use the 10yrs treasury bond rate for the risk-free rate and the implied volitility as the standard deviation.
08-27-2008, 12:23 PM
#755
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Originally Posted by Khoa,Aug 27 2008, 11:20 AM
when using the black-scholes option pricing model, what are consider the standard values for the standard deviation and the risk-free rate? i usually use the 10yrs treasury bond rate for the risk-free rate and the implied volitility as the standard deviation.
No one really uses BS model in the industry. Complex programs(usually involving MonteCarlo simulations) are run to price the various options.
I personally would not trust any option price found using the BS model.
08-27-2008, 02:17 PM
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Originally Posted by PearlwhiteS2k,Aug 27 2008, 12:52 PM
OMG your down 30% in your portfolio? May I ask what are you holding on to?
Myself YTD I'm up 11.5% right as of today. I have never used options before so I can't comment on it but at least it's only what u want to use instead of risking all your money in the market.
Erik quick question. How much will it cost me to buy 100-200 AAPL options?
Nate
Myself YTD I'm up 11.5% right as of today. I have never used options before so I can't comment on it but at least it's only what u want to use instead of risking all your money in the market.
Erik quick question. How much will it cost me to buy 100-200 AAPL options?
Nate
08-27-2008, 04:49 PM
#759
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Originally Posted by Khoa,Aug 27 2008, 02:17 PM
congrats on your gain. i basically have positions in tech, financial, and speculative stocks which i shouldn't have mess with. it's like everything i touch decreases in value. i bought WB on the rebounce at 18 and some change and got slammed.
the boring stocks like energy, insurance, staples, services....things that don't go bad and people need.
if there is a growing population....its pretty easy to make money off a growing base if you are an industry leader.
I like coal right here...BTU and ACI for a long term position.
08-27-2008, 04:58 PM
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i got hammered with enery stocks recently as well, and with regards to consumer staples, most of which are near its 52 weeks high and i can't see any catalyst that can drive them higher. i've been watching KFT for some time now, but haven't found a resonable entry point. i might reconsider some energy stocks once i hear more negative news or maybe on the next big declines.