How to Roll Weekly Options Like a Pro
In this article I am going to teach you how to effectively roll into new positions when selling weekly option contracts on ETF. This article is a supplement to our ETF Premium Strategy article which teaches a profitable way to monetize the variance risk premium in ETFs. Key Takeaways End-of-Week Trade Management: Close your current […]
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 […]
How Professional Option Sellers Think About Trading – The Mentality You Need To Maximize Your Returns
If you have the opportunity to spend time around people who have actually built a career out of trading, whether by working for a firm or starting something of their own you will notice that they all think about trading through a similar lens. If you want to start running your book like a pro, […]
Mastering Option Selling Strategy Development: Creating A Profitable System
If you have read our previous articles about what makes trading profitable and how volatility works, you are pretty much ready to start looking into your first strategy. This article is going to dive into the world of what a profitable strategy looks like and what it would take to actually build one for yourself. […]
The Power of Data Driven Trading: How Profitable Option Traders Succeed
If you read our article about expected value and what separates the top 1% of traders from everyone else, you know that profitable traders think in terms of expected value and have extreme price sensitivity when they look at the markets. But how do they actually have the confidence to put their money behind these […]
Two Ways to Price Option Premiums: A Masterclass In Option Selling Strategy
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 identify areas where the options are trading at a different price than what they should be, you have found a good trading opportunity. Most of the time, forecasting option prices […]
The Importance of Trading Research: Finding Tradable Information
Finding a good trading opportunity requires two things. The first is that there needs to be a pricing discrepancy. A difference between the current market price and what you think fair value should be. The second is that there needs to be an understandable reason why this opportunity exists. Answering this second question requires developing […]
How to Think Like a Professional Option Trader: The Secrets of the 1%
We all know that 90% of traders lose money, but when it comes to options, the statistic is even more daunting: 99% of traders end up in the red. Most people who enter the world of options trading do not achieve long-term profitability. When asked why these traders fail, the usual answers are poor mentality, […]
How to Sell Options Profitably When IV Rank is Low
Compared to a couple years ago, the VIX is pretty low. We are used to seeing VIX at 25 or higher, and now it’s just at 15. Many traders think that this means there are no trading opportunities, but this is simply not true. Our perception of where implied volatility should be is skewed because […]
The Truth About Trading Psychology: The Real Reason You’re Not Profitable
Trader psychology is often touted as the main reason why many traders fail to beat the market. From day one, traders hear that their lack of success is due to being too greedy, not managing risk properly, or simply not having the right mindset. Every “guru” out there points to trader psychology as the culprit […]
Who Trades Options – The 4 Groups That Are On The Other Side Of Your Trade
Retail traders have a habit of viewing the market as a faceless, monolithic entity they are up against. Like a gambler facing off against a casino. trade. But in reality trading is less like roulette, and more like poker, where you are directly competing against individual players. You see this thing we call a market […]
The Ultimate Earnings Options Strategy – Selling Options Like a Professional
Variance risk premiums often arise around market events that could lead to significant price changes in stocks. Examples include earnings reports, FOMC meetings, and product releases. These events can trigger substantial price movements, offering considerable returns to those providing liquidity to option buyers during these times. One of the most popular event-driven trades among Predicting […]