Volatility Strategies

In this short video tutorial I discuss the basics of Volatility Strategies.

Points covered include;


  • COMBINING OPTIONS TO TAKE A VIEW ON VOLATILITY INSTEAD OF MARKET


  • DIRECTION STRADDLE = CALL + PUT OF SAME STRIKE STRANGLE = OTM CALL + OTM PUT (DIFFERENT STRIKES)


  • BUYING STRANGLES IS CHEAPER THAN STRADDLES AND GIVES YOU MORE LEVERAGE BUT REQUIRES A LARGER MOVE TO MAKE MONEY, BREAKEVENS ARE FURTHER AWAY.


  • YOU CAN SELL STRADDLES AND STRANGLES TO COLLECT PREMIUM IF YOU THINK MARKET WILL NOT MOVE


  • IT'S A WAY OF EARNING INCOME IN BENIGN MARKETS


  • RISKY STRATEGY DUE TO UNLIMITED POTENTIAL LOSSES


  • MAKES MONEY MOST OF THE TIME BUT WHEN YOU LOSE, YOU CAN LOSE BIG!


If you have any questions about Volatility Strategies, or any other questions about trading Options, please feel free to write your question in the comments.


To book me for a seminar, or trading course, email enquiries@optiions-insight.com


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