Oct 26, 2019 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations
Implied volatility (IV) is directly related to the value of the premiums we receive when selling covered call and put options. The more volatile the underlying security, the greater the premium and risk exposure. I have written quite a bit about IV over the years and...
Apr 8, 2017 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Whether we are selling covered calls or cash-secured puts we frequently look to our broker platforms for ways of enhancing our trading success. As these platforms become more sophisticated and competitive, there are a myriad of software analytical programs offered...
Mar 26, 2016 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
When selecting stocks and options for covered call writing and put-selling we factor in volatility, both implied and historical. Historical Volatility (HV) is the actual volatility of a security over a given time period. HV is calculated by determining the average...
Nov 7, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
When we write covered calls or cash-secured puts, we are selling volatility. The time value component of a short-term option premium reflects the amount of time until expiration plus the volatility of the underlying security. Since most of us are comparing options...
Oct 24, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Volatility is a key consideration for both stock selection and option-selling decisions. Despite its relevance to our covered call writing and put-selling selections, volatility does have its limitations and we must fully understand how we can best take advantage of...
Podcast