Debits, Credits & Probability of Profit
Strike selection plays a big role in the probability of profit for an options position, but Implied Volatility Rank (IVR) also plays a vital role.
Debits, Credits & Probability of Profit
Trading the Post-Earnings Volatility Crush
Corporate earnings season is usually a treat for options traders. Opportunities multiply as implied volatility swirls in different directions across a wide swath of symbols. And while most traders have already identified how they like to approach an “earnings play,” the post-earnings playbook can be less robust. Post-earnings depression for volatility traders can be a … Continued
Avoiding the Long Premium Trap
The increase in market volatility at the end of summer has become more tempered in recent weeks. That reality is reflected in the Chicago Board Options Exchange Volatility Index (VIX), which has dropped back to about 15, once again below its historical average. Depending upon an investor’s approach to trading and current outlook, he or … Continued