Classical patterns have an expected resolution more often than not, so higher odds on a given side. Plus standard deviation combined with resistance / support from TA gives you a quantifiable probability. That's enough info to buy / short a stock. Options just increase leverage. The IV and greeks are just options tools to confirm specific ranges since you have the option to profit on anything but that amount, where a stock must go up if i'm long or must go down if i'm short.red_skittles wrote: ↑How do you quantify the chance of a successful trade based on the formation of a pattern? Aren't things like implied volatility and "the greeks" based on Black-Sholes formula which is just a theoretical model of option pricing?
The probabilities / higher odds are determined on how classical patterns resolve, regardless if stocks or options are used.
Rod