What is Volatility In Options and Why Is It Important For Option Sellers?

Option prices are based on volatility. Options were invented as ways to trade volatility. If you want to run a successful option selling portfolio, you must have a complete and thorough understanding of what volatility is and how it relates to the value of options. This article is going to introduce you to the concept […]

Is Selling Options Profitable? The Answer is Yes and Here is Why

A question I get asked all the time is: why do you trade options and not forex, stocks, or futures? Why dedicate all your time and efforts to the options market? The simplest answer is that it’s where we found a way to make money. But I’m not going to leave it at that because […]

Statistics For Option Selling: Essential Concepts You Need To Know

There are some basic statistical concepts that you need to be familiar with in order to be a good option seller. In this article we are going to cover some of the statistics 101 ideas that you need to know to at least get started.  You might be wondering why statistics matter in trading. The […]

Where to Place Option Wings When Selling Iron Butterflys and Iron Condors

One of the most frequently asked questions about iron butterflys and iron condors is: “Where should I place the wings?” Understanding the purpose and structure of an iron butterfly is straightforward for many, but determining the optimal placement of the wings often poses a challenge.  So I am going to give you a systematic three-step […]

Mastering Days to Expiration (Option DTE) in Options Trading

This blog is going to teach you how to pick the right expiration to trade for your option selling trades.  The choice you make for which Days to Expiration (DTE) you trade is a pivotal part of how you express your view on the market, so you need to understand how it impacts your position. […]

Structures Used In Option Selling Strategies – Long and Short Straddles

In options trading there are two fundamental opinions that a trader can express on the market. Long volatility and short volatility. These views are fundamentally your opinion on the difference between implied and realized volatility. When you are long volatility, you are saying that you think realized volatility will be higher than implied volatility. If […]

Mastering Back Ratio Spreads: A Comprehensive Guide for Option Sellers

Back spreads, also known as ratio spreads, are an option selling structure that is highly sensitive to skew and offers a great way for traders to monetize the variance risk premium in ETFs. This article will cover what back spreads are, when and why to use them, and how to manage the associated risks. Key […]

Introduction to Relative Value Trading: A Profitable Way To Sell Options

One of my favorite option selling topics is relative value trading. It’s based on finding price discrepancies between similar assets and is arguably one of the best approaches to strategy development. Let’s explore how relative value trading works, its applications, and a real-world example that made me some decent coin back in the day. Key […]