IV percentile definition and example IV percentile is defined by the following formula: Therefore to calculate the IV percentile. You can use the following procedure. You first need to chose a time period. From which you will take the past IV levels. Count the days from this time period. On which the implied volatility was …
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A lot of options traders are already writing covered calls for a living. That is not a surprise as a covered call is one of the best strategies for options trading beginners. Because of it’s simplicity this trade is wildly popular among retail traders. Writing covered calls is quite low risk. However you can’t ignore …
Zero cost collar definition A zero cost collar is a form of collar option strategy where the credit of money on one leg of the strategy offsets the amount debited for the other leg. Options collar is a protective option strategy that is implemented after a long position in an underlying that has experienced substantial …
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Trading options for a living, learn how So you want to be trading options for a living? Great. We are here to help you with that. There is only one thing you need to realize now. It’s not easy. Therefore you could use some advice. Check out our options trading course for this. First of …
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Best option trading strategy will probably surprise you. Because it’s a covered call! What? How is this possible? Let us dig deeper into it. Best option trading strategy according to CBOE data. So we will admit the title here was a bit of a click bait. You can’t say this is the best strategy …
Definition of straddle option strategy Straddle option strategy defined as two legs of both ATM put and ATM call options. Options straddle by definition is market neutral. Therefore it can bring profits in both falling and rising markets. The catch being that market moves need to be volatile. That is because a trader who chooses …
Iron Condor is a options trading strategy with limited risk, non-directional outlook and defined maximum profit. Structured to have a big probability of success. This trade works best when there are no volatility spikes in the market. The strategy can be broken down into four singular option positions, consisting of: Short OTM call Long OTM …
Iron condor: all you need to know. How to trade it, risks and profit potential.Read More »
Iron condors can prove to be a very reliable source of income. However due to illusion of lower risk of wide strike iron condors traders can forget about risk management. Today on our blog we will talk about trading iron condors for a living. Be sure to read the word of caution in the end …
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