Use of Distribution in Options analysis

mswiggs said:

Hi all,

I am just wondering if many traders use statistical distribution of the share price when deciding weather or not to put on a trade. And the overall effectiveness of using this type of analysis.

Also what type of distribution do you use? Eg the most common seems to be normal distribution but I am wondering if there are other types, eg Logarithmic, which seems more effective.

Cheers Mick

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mswiggs said:

Thanks for your replies,

Nick whats MAE analysis? :$

Mick

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