Add training workflow, datasets, and runbook
This commit is contained in:
@@ -0,0 +1,24 @@
|
||||
Finding Mispriced Options • 159
|
||||
Plugging in the 39/46 for Mueller Water, I would get the following:
|
||||
6/21/201612/24/20156/27/201512/29/20147/2/20141/3/20147/7/20131/8/20137/12/2012
|
||||
Date
|
||||
Mueller Water (MWA)
|
||||
Price per Share
|
||||
25
|
||||
20
|
||||
15
|
||||
5
|
||||
10
|
||||
-
|
||||
Y ou can see with Mueller Water just how big a 7 percentage point dif-
|
||||
ference can be for the bid and ask implied volatilities in terms of projected
|
||||
outcomes. The 39 percent bid implied volatility generates an upper range
|
||||
at just around $15; the 46 percent ask implied volatility generates an upper
|
||||
range that is 20 percent or so higher than that!
|
||||
Overlay an Intelligent Valuation Range on the BSM Cone
|
||||
This is simple and exactly the same for a big company or a small one,
|
||||
so I’ll just keep going with the Oracle example. After having done a full
|
||||
valuation as shown in the exam valuation of Oracle on the IOI website,
|
||||
you’ve got a best-case valuation, a worst-case valuation, and probably
|
||||
an idea about what a likely valuation is. Y ou simply draw those numbers
|
||||
onto a chart like this:
|
||||
Reference in New Issue
Block a user