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How To Read Option Volatility Skew to Understand Future Expected Moves
As a follow up to our Introduction to Skew, we will dive deeper into what skew can look like for different types of tickers and
As a follow up to our Introduction to Skew, we will dive deeper into what skew can look like for different types of tickers and
When we look at the option chain for any given company, we have two primary dimensions that we can look across. The first is time,
So you want to sell volatility but aren’t comfortable holding the unlimited loss exposures that come with a short straddle or strangle. This is where
When running a trading strategy doesn’t it always seem like you either bet too big and risk blowing up, or you bet too small and
Autocorrelation is one of the characteristics of volatility that help us understand how it moves and changes over time. If you’re new to the term,
As an option seller, the most important concept that we need to understand is called implied volatility. This is the concept that once understood will
The entire game of trading options is about pricing the variance risk premium that is embedded into the option price. If you are able to
One of the most beautiful parts of trading options is that you can create a structure to express your exact view on the market. For
Theta is the greek that most option sellers are familiar with because it tells us about how much we are getting paid each day when
One of the hardest hurdles for retail traders to overcome when they look at the world of option selling is the idea of carrying the
Delta is one of the option greeks that every option seller has heard of, but may not fully understand. It’s one of the most important
One of the biggest fears that I hear expressed by option sellers is: “What do I do if I get assigned early!” Exercise and assignment