Options Trading Help: Watch For Liquidity

A recent discussion on options was started when this question was asked:If I want to buy a PWER stock option with its high growth because I don’t have the money to buy it outright. What things in such a option should I look for and what should I avoid?

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Fair Warning: LEAPS Can Go POOF!

I learned about one risk of buying LEAPS the hard way.LEAPS (Long-Term Equity Anticipation Securities) are options that expire in a year or more. That means they generally have a lot of time premium built into them.

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Does the VIX Get it Right?

In theory, a more volatile market in the next 30 days would justify higher options prices today, but does the VIX usually get it right in practice? Does today's VIX have any correlation with actual volatility over the next 30 days?

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