Options - Alternative To Black-Scholes - by Michael C. Thomsett
Using the Black-Scholes pricing model for pricing options is not the best system for trade timing. Given the numerous flawed assumptions in Black-Scholes, traders may consider an alternative for selecting options and timing trades - for two reasons.
First, many systems are based on using options expiring in the very near future. However, if the selection is based on implied volatility analysis, this is an unreliable method. Volatility
