Selling Call Options

Selling Call Options is in general not the first trade an investor makes. It is contrary trade of buying calls. A trader that buys a call option expect the underlying to increase in price. Typically a trader select options which have a high Implied Volatility. These options are rich on premium. A trader that is selling call options receives option premium. […]

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Why Sell Strangles with 30 Delta

Traders are selling naked options with high implied volatility in order to receive option premium. Selecting strikes 1 standard deviation away from the stock price give the seller 84% chance to keep the credit. Option Premium is not so big though. Are there ways to increase the premium collected? Instead of selling one option you can also sell two at […]

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