I won't be using Sentinel 4 for my covestor model. I will use my pairs system since Sentinel 4 daytrades. It is for futures.
Not 5bp's, 5 cents. The tangent is the equivalent of taking atm call option trades with delta's of 0.5 or 50%. Casually, yes, it's within the range predicted by delta's previous value from the change in the underlying the following period.
It's true, I can't, unless I bring in the binomial probability model! Would you like to test 5 stocks, calculate their deltas, and track them to confirm the 5 cent rule?
Where are the answers to the good questions on this thread? dvega/ddelta/dvamma/dfuckyou/etc are not answers.
I think they might be in the first 25 pages somewhere, but, my answers, more specifically, whether you like the numerical example I tried to come up with, do provide the information required to know what delta is for, and I'm not going to repeat it here, because I said it more than 5 times. Do some reading.
Show me something that is of positive value. BTW: what happened to your bearishness on the QQQ/market at the latest bottom. It is documented in my thread. I assume you have been reading it. Here is the link: http://www.elitetrader.com/vb/showthread.php?threadid=232731