Sunday, June 14, 2015

Modeling market sentiment and pricing options by volume, open interest

Modeling market sentiment and pricing options by volume, open interest - Quantitative Finance Stack Exchange:

"Are there any empirically-proven methods/formulas for weighting IV surfaces, pricing a discount/premium in an option, and/or adjusting any of the 1st- or 2nd-order Greeks for the magnitude (volume or dollar-volume basis traded) of activity in each option contract for a market?"


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