The chart below provides an excellent example of what we at Libra and the Apollo data set and signals have been doing for 20 years and still are. This image is BP – needless to say benefitting from events in the Middle East. And how. Anticipating entry and exit points for stocks, sectors and markets is tough. A bit like drilling for oil. The Margin of Safety is one Apollo signal that provides essential real time information for investors and traders. The Apollo Margin of Safety (MoS) gives users a continuous, objective assessment of the risk and reward of holding a position, long or short. The indicator applies a real options pricing model to determine the Margin of Safety demanded by a marginal investor in the stock and the forecast boundaries where the risk of buying/shorting the stock is zero. The boundaries correspond to the price levels at which the “premium” for a put or a call decay to zero, and are referred to as CallZERO and PutZERO in the database. The MoS indicator is interpreted in conjunction with the Value Indicator %.which is the image below and as you can see we are now at extreme premium to Value.
