Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
When most traders think of making money in the markets, they picture buying low and selling high — or riding a trend. But what’s the best trade to make when a stock does absolutely nothing? That’s ...
The financial markets have experienced strong volume growth in the short- dated index option arena. This paper explores the performance of short-dated index options versus the subsequent price move in ...
A straddle can be considered a volatility spread, as the trader who puts on the straddle is speculating on the volatility, or degree of movement of the underlying, not necessarily the direction of ...
Short dated index options have been all the rage for the past couple of years. The Nasdaq-100 (NDX) option market has been a big beneficiary of widespread use of short-dated options. For example, ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...
Budget week inflates option premiums due to market uncertainty, with Nifty ATM straddles consistently opening high. While volatility rises pre-Budget, an "IV Crush" consistently deflates premiums post ...
Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...
Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...
If you're new to options trading, you might be confused by the many terms, such as vertical options, straddles, and strangles. The following article will introduce you to each type and explain why ...
Straddles allow traders to cover both sides of a play while still swinging for triple-digit gains Trading options can be a complicated process as a lot of options strategies are available and traders ...