On the 10/24 episode of What Elsa Ya Got, Tastytrade had a discussion of standard deviation and a guide on how to select the strikes to meet the criteria based on standard deviation.
Below are the slides I found useful. Or simply
.5 SD - Select 69% OTM Call or Put
1 SD - Select 84% OTM Call or Put
1.5 SD - Select 93% OTM Call or Put
2 SD - Select 97.5% OTM Call or Put
0 comments:
Post a Comment