The RoToR Payoff Diagram®: Distinguishing what’s probable from what’s possible (IFTA Conference Presentation)

Saturday 14th October. 5:45 PM

The RoToR Payoff Diagram® addresses the following key deficiencies inherent in the traditional payoff diagram.

1) Market Outlook - It allows the Technical Analyst a means of reconciling the historical price action of the underlying instrument and any inferences that (s)he may have on the future direction and momentum of the trade, with a quick visual guide to the zone(s) of prices necessary for a profitable options strategy trade.

2) Market Volatility - It allows the Technical Analyst to make an assessment about the underlying instrument’s historical volatility and trend in terms of a suitable options strategy.

3) Likely Outcomes - Using the Volume At Price technical indicator as the basis for the probability distribution function (pdf) of the Underlying Instrument’s future price, the Expected Monetary Value allows for the direct comparison of various options strategies, so that a strategy with limited risk and unlimited profit can be usefully compared against a strategy that has limited risk and limited profit.

The presentation will describe the key attributes of the RoToR Payoff Diagram® and highlight future developments.

Further information: IFTA 2017

Website Disclaimer

All information and content on this website should be viewed as for educational purposes only. Although the author and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to promote better trading decisions but is not, in itself, sufficient to enable profitable trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses.

Any form of trading, including options, contains risk. Options trading has large potential rewards, but also large potential risks, and as such may not be suitable for all investors. Only risk capital should be used. You must be aware of the risks and be willing to accept them in order to invest in the options markets. Past performance is not indicative of future trading performance. Any consequences resulting from your investments are your sole responsibility. Enhance Your Options Pty Ltd does not assume responsibility for any profits or losses in any options or trading strategy mentioned on the website. This is neither a solicitation nor an offer to trade options. It is the responsibility of each trader to determine their own financial suitability to trade options, or any related financial instrument . Enhance Your Options Pty Ltd cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here.

All information should be taken as for theoretical and for educational purposes only. Moreover, theoretical profits and losses may not translate into actual profits and losses, which may be greater. Any indication of profits should be considered hypothetical and may not reflect slippage, liquidity and fees incurred during live trading.

By continuing to access this website and all other websites owned by Enhance Your Options Pty Ltd, and clicking I Agree below, you are agreeing to indemnify Enhance Your Options Pty Ltd from any future loss related to investing and sharing. To participate in actual investing and trading, you agree to seek out the services of an appropriate financial intermediary suitability qualified and authorised to operate within your jurisdiction.

I Agree