In the final post of this technical series on derivatives trading we discuss using options as insurance, why the Black-Scholes model is wrong and trader psychology.
Posts in quant-finance
In the third post in this series on volatility and options trading we investigate the effects and trading implications of input behaviours on the option price.
Continuing our series on options and options trading, we focus on the behavioural patterns associated with options prices and how non-linear behaviour is an important consideration.
In this series we cover options: a deceptively complex trading instrument that provide an entirely different type of insurance - against directional moves in financial markets.