When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...
Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility. Options straddles and ...
While directional trading involves making bets on the price movements of an underlying asset, non-directional trading is a unique approach that focuses on generating profits from volatility and time ...
After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...
We recently utilized a short strangle options strategy with shares of Ford; I wanted to discuss the short strangle process in more detail. It can ultimately be incorporated into our wheel option ...
AppleAAPL is showing implied volatility at 28.7%, which is higher than normal for this stock. Option traders can take advantage of that high volatility by selling a short strangle. A short strangle ...
Freeport-McMoRan stock displays close to the highest level of implied volatility seen for this stock in the last 12 months. That usually suggests a time to collect rich premiums by selling options.