Create Higher Return on Options

more option premium

Sell volatility: Fade the news It’s no secret to most option sellers that higher volatility means higher premiums. How do you get more option premium? Traders fear Volatile markets. It makes them uncertain that they will make money. Therefore the price of the option goes up.  This situation creates more opportunities for the option sellers. I do not suggest you […]

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How to Trade Volatility effectively

For traders it is important to know how to trade Volatility. What is it and how can you use it? When the stock moves up and down Volatility increases. While uncertainty increases the option premium increases. This change of the stock option premium always is exaggerated. And the experienced trader knows that the the price will have a mean reversion. Why […]

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What factors does influence Options Pricing

One of the main factors of Options Pricing is the move of the underlying. The more volatile the underlying is the more expensive the option become. There are other factor which determines the price of the option as well As we approach the core of earnings season, and if you are going to trade options around such events, it is vital […]

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Time Decay is your best Friend

We benefit from options because of Time Decay. Time decay is represented by a Greek term know as Theta. Don’t worry too much about the Greeks for now, we will take a look at it a later on. Theta is a crucial component for options traders that decide to sell options. They will receive options premium to take on risk. […]

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