Even though implied volatility has been relatively low in the market, there will be a day when it does rise again. Implied volatility (IV) by definition is the estimated future volatility of a stock?s price
Just like in option trading, a well though out and well kept watch list can help a trader in a variety of ways including scoring profits.
Many option traders choose never to allow settlement for the options they hold, either long or short.
The market has moved higher, lower and higher again over the last month or so.
Your daily options news rundown for Thursday, April 17, 2014.
The market has been on quite a run lower lately since the S&P 500 hit its all-time high earlier this month.
Both double calendars and double diagonals have the same fundamental structure; each is short option contracts in nearby expirations and long option contracts in farther out expirations in equal numbers.
Compared to trading stocks, there are so many more strategies available to an option trader. But more importantly: Do you know why there are so many different types of options strategies?
I often use the word ?moneyness? and there is even has a section about it in my books. Moneyness isn?t a word, is it?
There are so many different characteristics of options that I talk a lot about with my options coaching students.
With March finally here [Ed, well, tomorrow it will be here] , traders are still assessing when or if ever this market will have a correction like it had in January.
Have you ever wondered how can you know how much an option is going to move with respect to say the underlying? Very simple ? check out its delta.