Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
Capturing volatility spikes and declines is a high risk game. The most direct way to speculate on the direction of volatility is to go long or short a volatility instrument such as the VIX futures contracts or its exchange traded derivatives such as VXX, SVXY, XIV...
Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
One of the most common ways that options traders lose money is a sudden, unexpected drop in historic or implied volatility. When this happens, strategies that once made money start losing money. And at the same time, risk from unforeseen “Black Swan”...
Flex Factor, Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
As the expiration clock approaches zero, the risk in open spread positions will often increase dramatically. Consider a butterfly spread. If the underlying stock is in the money on one leg, the delta of the spread will explode as the in-the-money leg delta...
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