Options Volatility Q&A: VIX, Skew, and the Rule of 16
Key Takeaways Option volatility skew illustrates which direction the implied risk lies in an underlying security The rule of 16 can help investors determine whether market […]
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Key Takeaways Option volatility skew illustrates which direction the implied risk lies in an underlying security The rule of 16 can help investors determine whether market […]
Key Takeaways Options market makers are professional traders, paid to provide liquidity to the market The competing objectives of different market players, such as market makers […]
Key Takeaways Consider limiting option trade candidates to those with defined-risk Learn how to assess the probability of a trade being in-the-money or out-of-the-money at expiration […]
Key Takeaways Buying calls and selling puts are bullish-biased strategies; buying puts and selling calls are bearish-biased strategies Buying options limits your risk of loss to […]
Key Takeaways Consider “high-probability” options strategies in liquid products Making smaller but perhaps more frequent trades might make your overall risk less concentrated Remember that more […]
Key Takeaways Covered calls can be part of a trade exit strategy, but know the risks Understand how dividends affect options prices and options strategy There […]
Key Takeaways Learn how comparing historical and implied volatility can help you choose an options strategy Check the Sizzle Index to see any unusual options activity […]
Key Takeaways LEAPS options contracts have long terms, offering expiration dates as far out as three years The risk components of LEAPS—as measured by options greeks—have […]
Key Takeaways Selling covered calls could help generate income from stocks you already own Selecting strikes and expiration dates depends on the desired risk and reward […]
Key Takeaways Volatility levels shouldn’t be the only consideration when deciding which options strategy to trade High volatility levels can mean higher options prices, but know […]