Advantages by Trading Implied Volatility

Trading Implied Volatility is selling the premium of the volatility expectation that is priced into individual options. The implied volatility of an option is actually backed out of the price of the option. All the inputs of an options pricing model are known (time to expiration, strike, price, interest rates) except for the volatility that the option is pricing in. […]

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How to Collect more Option Premium

Option sellers want to become more efficient in trading. They are always attuned to maximizing odds, sellers key toward being efficient, and efficiency often can mean getting the most bang for your buck. To option sellers, that means collecting big premiums. What small changes can you make in your trading techniques so that you can make more profit. How can […]

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Trading Implied Volatility

Trading Implied Volatility is a key concept for option traders. Even if you are a beginner, you should try to have at least a basic understanding. Options with a high Implied Volatility are more expensive than options with low IV. This knowledge gives us an advantage when we sell options and receive option premium. Option volatility is reflected by the […]

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How to Make Money with Options

Selling options is another way to profit from option trading. The basic idea behind the option selling strategy is to hope that the options you sold expire worthless so that you can pocket the premiums as profits. Selling Options is an excellent strategy to make money with options. The option premium represents the entire income the option seller can hope […]

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How to create a Trading Edge

A trading edge in options trading can be described as a set of conditions that when used, give a higher probability of a trade will profit than not. You can enter trades which are much more likely to be profitable than others. It all depends on the strategy you use and the probability of the option going in the money. Even […]

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How to build your own Trading Plan

Today’s article will explain why you need a trading plan. It will show you how to build your own. So, let’s get started. A trading plan is like a business plan.  It is a check list that helps you to trade in a consistent way. It is a template for trading the markets. The check list will describe of  how […]

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Trading signals for Stock Options

Most traders wants trading signals. What are trade signals? Trading signals provide clues as to when to trade stocks or stock options. We use them to determine entry points and optimal timing. Learn the most important trading signals and how to use it to time your market entry. Trading signals provide traders with  signals that function as that green light […]

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Implied volatility as a trading tool

Implied volatility as a trading tool

Implied Volatility is important when you are selling options. It is a great trading tool that shows you how much potential the stock can move according the market’s opinion. It doesn’t give a clue which direction it is going to move though. If implied volatility is high, the market expects that the stock can move largely. When the stock has […]

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