The process of selecting the Options Trading Strategies begin with implied volatility. Key Component in determining an option price is Implied Volatility. Option Price premium is determined with Implied Volatility. Easy way to understand Volatility is that option price and volatility will move in the same direction, keeping all the other things same.
OUR FAVORITE IS THE LAST POINT WHICH IS ALSO THE BONUS POINT UNDERSTANDING OVERTRADING
BETA TOO HAS SHORTCOMINGS BETA AS REAR VIEW MIRROR Beta is a rear view mirror and does not predict the future. Past price movements are a very poor predictor of future. Most of the traders are over dependent on the beta for their single stock analysis. When you are investing in a single stock […]
An Interview with Van K. Tharp, Ph.D.
Not knowing what you are doing risk is imminent and unavoidable. Many don’t know the risk persists. Unless they experience it. Most investor neither use fundamental analysis nor use technical analysis to trade. This is the risk.
OPTION ORDER FASTER EXECUTION Small options quantities are very easier to get executed since the price which you are seeing is the price at which one can execute the order. Smaller quantities options can be executed at times at market price for faster execution with the expectation to capture the smallest positive move.