SPY Options Probability Cones
Posted on February 24, 2010 at 00:17 AM EST
The plot of at-the-money Put and Call prices versus expiration dates roughly describes a horizontal parabolic cone. Presuming options traders are rational, the prices they set for the options are one indicator investors in the underlying security might consider when estimating the range within which the price of underlying may travel. The cones are also [...]
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