Butterflies are good strategies for high volatility environments as they have limited risk and premium expenditure. In exchange, they have a limited profit potential. Butterflies also involve buying and selling three different strikes and therefore …
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With the VIX around 15 and drifting lower on alot of recent days as the market makes new highs it seems a good time to discuss option premium and low vol environments. The first thing …
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The vertical spread is one of our favorite strategies on the site. A vertical spread, involves buying and selling a call, a call spread, or buying and selling a put, a put spread, of the …
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I got a few questions on what options positions should look like in a low vol environment like this. There’s a couple things going on with vol that I want to explain first. The first …
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Straddles and strangles are volatility strategies. They seem like simple strategies, but are in fact fairly advanced as your predictions must be quite accurate for them to work out. Straddle A straddle consists of buying …
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We’re starting a new occasional series where we look at a recent trade and analyze what went into the pricing and how it played out. We think this will be useful as an educational tool …
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Part VI Calendar Spreads Calendar spreads, also known as time spreads, are extremely versatile strategies and can be used to take advantage of a number of scenarios while minimizing risk. A calendar spread consists of …
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It’s a slow day so I thought I’d post some Q&A. I’ll leave the comments open on this post for any further questions that may have been bugging you. We’ll do our best to answer. …
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This is a continuing series on options trading terms and techniques. Parts I, II, III and IV are here. We’ll open up the comments on this post to try to answer any questions on the …
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This is a continuing series on options trading terms and techniques. Parts I, II and III are here. We’ll be following up with Part V shortly. Part IV The Greeks The Greeks help us …
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