Expected Price Movement of an Option (And Tools to Analyze)

Salvatore has sold a put. It is now In the Money and he has 21 days to Standard October Expiration. Knowing that no one can know what the underlying will do, what can he expect for changes in his buy back cost and fluctuation in his sold put premium?

This presentation was a lot of fun (and insightful)!

- (0:00 to 1:10) We review some of our recent uploads and archived webinars
- (1:10 to 4:25) Expectations for the price movement of an In the Money Sold Put to Expiration
- (4:25 to 8:50) The Tools on PowerOptions to Estimate the Expected Price Movement of an Option
- (8:55 to End) A Historical Example of a Cash Secured / Naked Put that went from OTM, to ATM, to ITM, and back to OTM and how the Option Price changed during a 20 day period
(emphasis on the ATM Bell Curve, Time Value, Extrinsic Value changes with Implied Volatility and how that effects the options price).

Really Important Stuff Here! Whether you are selling options or buying options...trading spreads or simply doing covered calls or naked puts...this video gives insight into how an option price might change over time with fluctuations in the market.

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