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option-selling factors of Theta, Vega and Delta

Greeks Spreadsheet Showing the Impact of Time to Expiration, Volatility and Stock Price Change on Option Value

Covered call writing and selling cash-secured puts involve both buying and selling of call and put options. We are dealing with two types of options as well as utilizing both […]

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volatility and covered call writing

Comparing Implied Volatility and Historical Volatility During Earnings Season

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. […]

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volatility and covered call writing

A Review of Volatility and its Impact on Option-Selling

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 […]

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Factors that impact option pricing

Calculating the Greeks Using an Options Calculator

The Greeks are a mathematical means of estimating the risk of stock options. Delta measures the change in the option price due to a change in the stock price, Gamma […]

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The Greeks and covered call writing

How To Use Implied Volatility In Our Covered Call Writing Decisions

Understanding the Greeks, or factors that impact the value of our covered call premiums, is essential to mastering options trading basics and becoming an elite covered call writer. One of […]

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Implied volatility differences between strikes and expirations

Vega: An Option Greek And How It Impacts Our Option Pemiums

Covered call writing generates monthly cash flow by selling short-term options. The main factor in determining the amount of this premium is the implied volatility (IV) of the underlying security. The […]

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Greeks: Factors that Influence our Covered Call Premiums

We have all heard the term “the Greeks” as it applies to stock options. Most of us know that these factors somehow explain how certain parameters can impact the value of […]

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