Fx Options puts/calls data correlation

leonardo

Casual Member
Hey Endorfinus,

I looked into it some time ago, but unfortunatly they have a way too high correlation (pearson), and higher transaction costs than forex itself. Therefore I personally don't see any way to turn this risk premium into excess expected return.

Best,
Leonardo
 

leonardo

Casual Member
Ah ok! Sorry for the misunderstanding. Anyway they are really too-correlated, I am not sure I see the point :S.
Nop sorry I don't, but I'm sure we could find it via google! If you find it pls share, I might be of help!

Leonardo
 

michael

Casual Member
My experience is that there are so so many things one can look into..options, market sentiment, commitment of traders, market cycles, seasonal patterns etc ...now they even have algos scanning social media for sentiment etc etc Its impossible to get a full picture and so l stick with "Its all in the price...let the market guide you..etc"! However, if you find something that works for you..brilliant, get on it!
Heard today that only 10% of Goldman Sachs traders make a profit every year...and look at the research depts they have!
its as if 10% of their trades make big money and the rest lose and/or BE and good money management let's the bank make billions from those figures...same ratios as a lot of top traders!
 

dafttrader

Forum Newbie
Sorry but I'm not too sure where you can go with this. An options premium has two components (a) the intrinsic value which will be present if the strike price is below the market price for a call option or above the spot price for a put option. And (b) the time value which will decrease the closer the option gets to its expiry.

The most important other factor in options pricing is the current volatility of the market. If volatility rises then premiums rise conversely if volatility falls then premiums fall. So could the rising option prices that you see be due to increased volatility in these uncertain times or the underlying asset moving closer to a strike price.

A Option is a derivative which means it derives it's value from the underlying asset not the other way around. At least that is the way I look at it.

Perhaps you can provide some examples so we can analyze them further?
 

erebus

TFG Forum Legend
I looked at Binary Options but once initial rush wore off, I decided to give that a miss, that was before I saw this video which I suggest you also watch, then decide

 
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