I have read details of Options Pricing: Black-Scholes Model from various sites.
T => time until option expiration expressed as a percent of a year. Input is on EOD basis, ie number of days. So probably whether it is 6 hr market or 15 hr value of T (in days) remains the same.
On the other hand, volatility is going to drop significantly for sure. So option premium will significantly decrease. Bad news for option writers.
Another good news option buyers premium decay per hour will be less. The bad news is the volatility drop, the chance of bigger sudden move will be lower then.
Most importantly average Profit & Loss percentage per option trade is going to decrease due to volatility drop. In the beginning options, traders might face difficulty in adjusting. Boring range bound phases will increase.
Wild premium/discount change in the future contract will decrease too.
Scalping with future will be easy. There will be more rangebound phases like the commodity market. Scalpers can target such phases.
T => time until option expiration expressed as a percent of a year. Input is on EOD basis, ie number of days. So probably whether it is 6 hr market or 15 hr value of T (in days) remains the same.
On the other hand, volatility is going to drop significantly for sure. So option premium will significantly decrease. Bad news for option writers.
Another good news option buyers premium decay per hour will be less. The bad news is the volatility drop, the chance of bigger sudden move will be lower then.
Most importantly average Profit & Loss percentage per option trade is going to decrease due to volatility drop. In the beginning options, traders might face difficulty in adjusting. Boring range bound phases will increase.
Wild premium/discount change in the future contract will decrease too.
Scalping with future will be easy. There will be more rangebound phases like the commodity market. Scalpers can target such phases.