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Thanks Tim, Lionel, Scott and Rick!
You were all very helpfull answering my questions.
Before I bought the ODDS package I wrote an e-mail to Don Fishback.
Because of the helpfull way Don answered my questions, I decided to buy ODDS.
But concluding from your reactions about which type of distribution to
use...it still seems like an unsolved mystery...
On the other hand: using the normal distribution will just give a smaller
profit chance than the "wider" log-normal distribution.
And the same is valid for log-normal distribution vs. "chaos distribution".
The difference is that the profit probability calculated by using the normal
distribution is likely to be smaller in real life.
The spread between bid and ask price of an AEX index option is often 1 or 2
Dutch Guilders. And the commissions are 30 Dutch Guilders per option
transaction.
What are your experiences with both these items?
Regards,
Onno Goedknegt
Regards,
Onno Goedknegt-The Netherlands
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