In 1997, the Nobel prize was awarded for work on option pricing. Stephen Ross of Yale University has described the work as "the most successful theory not only in finance but in all economics."
At this meeting, Rex Macey, CFA, will introduce option valuation. No prior knowledge is required. He will explain why options have value and what factors drive an options value (spoiler - it's not the expected future price of the stock). Special attention will be given to the concepts of volatility, implied volatility and delta - all useful to those who invest in options. Even for those who do not trade options, the insights from options valuation can provide insight into controlling risk and why "buying high and selling low" may not be as painful as it sounds.
We hope you can attend!
Rex Macey founded the independent, boutique investment counseling firm Red Tortoise in 2015. Before starting Red Tortoise, he spent 11 years at Wilmington Trust where his duties included heading the equity group, the asset allocation team, risk management and serving as chief investment officer.
Rex Mayne attended the Atlanta Options Investor Club meetings for several years and understands one of the big challenges with a subgroup of this nature is the wide variety of knowledge, strategy, goals, risk levels, etc.