Options Trading: Why Some ‘Greeks’ Matter More Than Others
The Greeks provide investors and traders with insight on given options positions’ response to potential scenarios in the underlying stock, but some are arguably more important than others.
Options Trading: Why Some ‘Greeks’ Matter More Than Others
How to Trade the Surge in Market Volatility
Investors and traders looking to exploit the surge in market volatility might consider the options market, with a strategic emphasis on mean reversion.
Trading the Summer Lull in Market Volatility
Market volatility has steadily declined throughout 2021, but such lulls tend to be seasonal — meaning an expansion in the CBOE Volatility Index (VIX) could materialize in late summer or fall.
Trading the New Low Volatility Environment
Due to dissipating volatility in the financial markets, investors and traders may need to adjust their playbooks for the remainder of 2021—as evidenced by the recent drop in the CBOE Volatility Index (VIX).
The Short Volatility Playbook
The mean-reverting nature of volatility makes it a great candidate for a portfolio, especially compared to directional bets, which typically constitute a 50-50 proposition. Hindsight illustrates that since the market bottomed in March 2020, picking market direction has been a lot easier than usual. Based on the performance of broad-market indexes, such as the Nasdaq … Continued
Time Decay, Theta & Toga Parties
Let’s talk Greeks—and no, there will be no reference to toga parties (sorry about the clickbait). Instead, the “Greek” we’ll cover is theta, aka time decay. Theta describes the declining value of an option as time passes, a critical component for anyone trading options. Specifically, theta reports how much an option theoretically decreases in value … Continued