Christian-Husband-Father-Finance PhD-DF BBer. Founder F Cubed. FTTP tastylive. NFA. Always for fun. All views mine. Check out my trading experiment at the link.
When is the right time to sell options premium? 📊
On tastylive's Know Your Options, @jschultzf3 explains how implied volatility rank (IVR) can help traders identify potential opportunities.
Using $META as an example, he breaks down why higher IVR matters, how falling volatility affects option prices, and when to consider taking profits.
#KnowYourOptions #OptionsTrading #ImpliedVolatility #TradingEducation
Good time to reminded that when you match for size, not only are short puts not riskier than long stock.
They are LESS risky than long stock.
You have the OTM distance the stock has to cover first AND you have the premiums offsetting your basis from the jump.
Why does the expiration date of an option matter when volatility starts to rise?
In a calendar spread, traders buy a longer-dated option and sell a shorter-dated option at the same strike. Because the longer-dated option has greater Vega exposure, an increase in implied volatility can work in the trader's favor.
In this installment of Know Your Options, @jschultzf3@optionsuncapped explains why longer-dated options carry greater Vega exposure and how that can allow gains on the back-month option to outweigh losses on the front-month option when volatility expands.
Have a listen to the breakdown and let us know how you factor volatility into your options trading strategies! 👇
#OptionsTrading #CalendarSpreads
1/ I have some news: I've joined @ClearStreetLLC and I am SO excited to be part of this team and what they're building. The roadmap is STACKED, and we're making serious headway for my fellow derivatives traders. 🎉