  Traders and investors involved in an option contract having the underlying
stock in range bound are likely to lose their initial investment. Timing in
buying an option contract is of capital importance. In a recent article [1] the
hypothesis of range bound market is used in conjunction to Black-Scholes
equation to find the transmission coefficient relation that help market
professionals to correctly timing their investment and risk taking decisions.
The present paper explores the theoretical basis of transmission coefficient
and its empirical evidence on the market.
