beginners corner
Tag Archives: VIX

How to Use Technical Analysis and Market Assessment for Strike Selection Guidance

Strike price selection is the second required skill for our covered call writing and put-selling portfolios. Stock (and ETF) selection and position management (exit strategies) are the other two. This […]

30 Comments Continue Reading →

Market Volatility and Our Option-Selling Trades: Using the VIX to Achieve Higher Returns

Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as […]

49 Comments Continue Reading →

Volatility and the Post-Crash Decade

For covered call writers and sellers of cash-secured puts, rising volatility has two faces. It is our friend in that our premiums will be higher as they are directly related […]

32 Comments Continue Reading →
covered call writing and market volatility

Using the CBOE Volatility Index (VIX) for Our Strike Price Selection

Options trading basics teaches us that the VIX or CBOE Volatility Index reflects the market’s expectation of the upcoming 30-day volatility. It measures market risk and is also known as […]

40 Comments Continue Reading →
covered call writing with VIX

VIX Covered Call Writing: Selling Options Against Market Volatility

Traditional covered call writing involves first buying a stock (or exchange-traded fund) and then selling a corresponding call option. The result of the initial trade is to generate cash flow […]

22 Comments Continue Reading →
volatility-based ETNs

Market Volatility and VIX-Based Exchange-Traded Notes

Our covered call writing and put-selling portfolios have been significantly impacted the past few weeks from extreme market volatility. In addition to rising wages, inflation concerns and projected interest rate […]

26 Comments Continue Reading →
VIX options to hedge an portfolio

VIX Volatility Options: A Place In Our Covered Call Writing Portfolio?

Option returns play a major role in our covered call writing and put-selling strategies. Mega-returns can be quite enticing but also very dangerous. Recently, with market volatility rising exponentially in […]

32 Comments Continue Reading →
implied volatility and option pricing

Implied Volatility: General Market Conditions That Make Option Values Move Up Or Down

Option trading basics teaches us that selling call and put options is actually selling time value. Time value consists mainly of time to expiration stats and the implied volatility (IV) […]

13 Comments Continue Reading →
covered call writing and technical analysis

Combining Technical Analysis And Market Assessment To Determine Strike Selection

Mastering stock and strike price selection are key components in successful covered call writing. There is no one factor that will dictate our choices but rather a mosaic of bits […]

15 Comments Continue Reading →
market assessment and covered call writing

The Role Of VIX and Market Volatility In Our Covered Call Writing Decisions

Options trading basics teaches us that the VIX or CBOE Volatility Index demonstrates the market’s expectation of 30-day volatility. It measures market risk and is also known as the investor […]

11 Comments Continue Reading →