Options Trading Chart of the Week

Option Trading Article of the Week

Option Trading - How I Trade Options - Liquidity and Implied Volatility

Posted by Pete Stolcers on August 29

Today's option trading blog concludes my series - How I Trade Options. To date, I've found the trade and quantified my opinion. Here's how the liquidity and implied volatility of the options influences my strategy selection. One of the advantages of being an individual trader is that I don't have to worry about "size". Often, 10 contracts is a large enough position and my order won't "drive" the market. As a newsletter writer or an institutional trader, I need to make sure the liquidity can support hundreds of contracts. I measure size based on the bid/ask spread and the respective…

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Stock Options Question of the Week

How I Trade Options - A Seasonal Example!

Posted by Pete Stolcers on September 20

Read the answer to How I Trade Options - A Seasonal Example!

Categories

• Analysis - Technical, Fundamental, Market
• How I Trade Options!
• Option Strategies - Good and Bad!
• How To Manage Your Trades
• Relative Strength/Weakness - My Edge
• How to Start Trading Options
• Option Intracacies - Expiration, Assignment, Volatility...

Resources

• Option Trading Quotes
• Option Trading Tutorials
• Option Trading Definitions
• Option Trading Books
• Trading Stock Options

Option Trading Q & A

• How To Get In When You Can’t Be Around.
• What Determines An Option Bid/Ask Spread?
• Option Credit Spreads - Where Should I Place The Stop Loss?
• Front Month or Back Month Options?
• How Does Assignment Work?
• Do You Ever Pivot From Long Put Options To Long Call Options?
• Option Trading and Risk Management - What Approach Do You Use?
• “I’m Reading A Course By Bernie Schaeffer. Is it a Waste of Time?”
• In The Money Or Out Of The Money?
• How Do I Handle A Losing Out Of The Money Option Trade That Has Lots Of Time?
• Covered Calls - Should I Roll Up and Out?
• What is The Best Approach To Option Trading If You Only Have $5000?
• “Rolling” An Option Position
• How Can I Exit This Option Trade Without Getting Whipsawed?
• If The Stock Option Liquidity Is Poor, Can I Get Screwed Out Of Profits?
• Surrogate Market Positions - How and Why?
• Which Option Strike Price Should I Trade?
• Why Are VIX Options At A Discount?
• Can You Help Me Exploit The Delta Of An Option?
• How Do I Get A Good “Deal” On A Stock Option?
• Which Option Trading Arbitrage Strategy Is The Best?
• I’m Faced With An Ill Liquid Market? How Can I Keep The Market Maker Honest?
• I Need to Know When I’m Assigned. Why Is Option Assignment Notification So Screwed Up?
• Why Aren’t Index Options Listed On This Popular ETF?
• What Do You Think Of A Covered Call Stock Option Trading Strategy That Uses LEAPS?
• Doesn’t Stock Option Trading Require The Use Of “Greeks”?
• Can I Make Stock Option Trading Profits If The Stock Moves Just A Little?
• The Market Is Going To Crash. How Can I Make Money Trading Options?
• How Do Market Makers Pin A Stock Right At The Strike Price During Option Expiration?
• A Can’t Miss In-The-Money Call Credit Spread!?
• How Can I Get An Entry Level Position Where I Can Learn How To Trade?
• How Can I Use Options To Capitalize On A Pre-Open Move?
• Is There An Option Broker That Will Adjust My Option Bid Based On the Stock?
• Which Option Pricing Model Should I Use To Calculate Implied Volatility?
• How Should I Approach High Implied Volatility Stock Options?
• Where Can I Find Stock Option Charts For Technical Analysis?
• Option Credit Spreads Gone Bad - Buy In The Short?
• What Is An Option Box Spread and How Does It Work?
• Can An Option Trader With A $100k Account Consistently Make $500 A Day?
• What’s Your Opinion Of This Option Trade?
• The Options On NWS Are Unusually Priced. Is This A Covered Call Opportunity?
• Option Trading Idea - Expiration Strangle
• Does Your Option Trading Use Straddles or Strangles?
• How I Trade Options - A Seasonal Example!
• Descending Triangle Formation - When Should I Enter?
• What Does It Take To Be A Full-time Trader?
• Where Should I Turn For Option Education?
• Why Use The SPY As A Market Gauge?
• How Do I Determine A Spread Price?
• The Problem With Option Limit Orders.
• Naked Put Writing And The “Big Hurt”.
• How Much Should I Expect To Make A Year?
• Index Trading vs Individual Stocks
• Will Penny-size Option Quotes Help Traders?
• Exercise, Assignment and Spreads
• Implied Volatility
• Hedge Or Bail?
• Hedging Option Positions
• Profit Management
• Is Covered Call Writing Risky?
• Protective Stops
• Debit Spread or Credit Spread?