RE: Regarding Expected Move Calculation
Can u help me to understand how OA calculating Expected move for a stock like in today case GodrejIND fall from 639 to 625 but OA expected move showing stock will move 4.5% ..?
You cannot use Expected Move to predict market direction. But Expected move can be used only to predict the Expected Range on any event like earnings results or any planned corporate announcement aka binary events. It is just a high probability range apart from that Expected range cant be used for speculative strategies but to build option strategies to benefit out of that insane range mostly directionless market neutral strategies .