The advantage to selling calls, of course, is the option premium you collect in exchange for being willing to part with your stock at the strike price of the option you sold. The disadvantage is that you sacrifice potential upside gains.
If there are new single-stock VIX indices now, why couldn't you also have a "sector VIX"?
According to the CBOE, single-stock "VIX-like" indices will measure implied volatility for options on these stocks in a similar way that the regular VIX does for S&P 500 index options.
Netflix (NFLX) appears to be one of those stocks that doesn't know how volatile it's supposed to be ? or at least options traders seem a bit confused.
A few days ago I pointed out that while the VIX has fallen since late November, it's certainly not nearing all-time lows (yet).
Today, CBOE Holdings (NASDAQ: CBOE) is the exchange thought of by many as synonymous with options trading. In the past, it was the Philadelphia exchange.
When today's implied volatility for options on a stock is higher than yesterday's, that may represent traders' changing views on future volatility. But what if there was no implied volatility yesterday?
Although the launch is only a couple of weeks old, CBOE Holdings (NASDAQ: CBOE) is already claiming success for its new electronic options trading venue C2.
There are always tradeoffs when it comes to trading options. The more in the money the option, the higher the price ? at least in theory.
The implied volatility for Apple (AAPL) options got the wind sucked out of them after the company released its earnings Monday night.
Whether a deal is coming for Yahoo! or not is impossible to know unless you are the one that is considering the offer.
Two of ZeccoShare’s more active members, Stardust and lucasjkr, were discussing a strategy of shorting both the 3X Daily Financial Bear ETF (FAZ) and the 3X Daily Financial Bull 3x Shares (FAS) simultaneously.