In this case, what is being mimicked is a long position on a stock by selling a put and buying a call at the…
This article was written by Chris Young and was first published on Epsilon Options (now part of SteadyOptions). The Options: Greek Vega Explained…
This article was written by Chris Young and was first published on Epsilon Options (now part of SteadyOptions). Below we’ll build up this payoff…
We’ll also provide some tips on how to pick the right strategy for your trading goals and risk tolerance. So whether you’re looking to make a…
Here’s our guide to this phenomenon and its uses in options trading… Implied Volatility Skewness Background Implied volatility (IV) describes the market’s expected volatility…
Why to prevent drawdowns? Here are some of the key reasons: Preserving Capital: When a portfolio experiences a drawdown, the value of the portfolio…
For the option buyer, the opposite is true. By owning an option, the trader has the potential to score a big profit—if the underlying…
For example: You see a credit spread with a market of $1.00 bid and $1.60 ask. There is little chance of selling the spread…
There are benefits to delta-neutral trading. One of the primary benefits is that it can help you minimize your risk. By hedging your portfolio…