/biz/ - Business & Finance

>>24631438
You don't need to understand or know the Black Scholes Model to understand probability or pricing of option contracts. It's just not necessary given the information provided through your brokerage trading platform like TOS or TastyWorks. I've traded for quite some time without understanding the Black Scholes model to entirety and this opinion is reinforced by Tom Sosnoff through his TastyBites show from tastytrade. You don't need to be a mechanic to drive a car, nor do you need to understand a model to trade and understand the basics of options pricing. Through experience, you'll come to realize what you figure you might need to know never comes to fruition (granted not with everything but some things like this), which is a good thing! All in all, it's fine to know, but you'll never use it with any real methodology, though knowing it won't hurt you. This is from my own experience of almost a decade of trading, so take it as you will, tastytrade will reinforce what I've just stated with more backing if you'd like that. Great question though, I've gotten it before.