Partial Derivative

I want to start with one of my favorite subjects - pairs trading, but put a special spin on it. My background is in Electrical Engineering, which I love. This video will show the analogy between concepts in circuit design and pairs trading. Enjoys the crash course lesson, and leave your feedback.

In case anyone saw Tasty Trade's discussion on IV Percentile vs IV Rank with Jacob , you may want to get your hands on the Think or Swim (TOS) IV Percentile script. I have included the thinkScript code I developed below. If you do not know how to add a script to TOS, there are tons of resources online. Just Google "add study to TOS" and you'll find a plethora of examples and guides. ~\Desktop\LCM_PercentileSTUDY.ts.html declare lower ; # Mark Laczynski # 3.13.2014 # look at 1 year of history input length = 252 ; #clean up the IV data from TOS rec clean_iv_r = if ( isNaN (imp_volatility()) and ! isNaN ( close )) then clean_iv_r[ 1 ] else imp_volatility(); rec iv_today_r = GetValue (clean_iv_r, -length); rec bar_number_of_todays_iv_projected_back = if IsNaN (bar_number_of_todays_iv_projected_back[ 1 ]) then 0 else if ( isNaN (iv_today_r)) then BarNumber () else bar_number_of_todays_iv_projected_back [ 1 ]; rec iv_today_p

I want to use this forum to post my knowledge about options trading. I will probably not post on any regular schedule; instead the goal is to create high quality content as it's completed. As a fair warning, this blog's layout may change around as I discover new features. You may be wondering where the URL "pdvpdt" came from. It is just the selected characters from " P artial D erviative V   W ith R espect to  T " which is the equation for an option's theta. More on this and many other subjects forthcoming.