Options Trading Mastery: Effects of Volatility on the Time Spread
When purchasing a time spread, the investor should pay attention to not only the movement of the stock price, but also the movement of volatility. It plays a very large roll in the price of a time spread, which is an excellent way to take advantage of anticipated volatility movements in a hedged fashion. Option [...]
Posted in Investing, Options
|
Tagged options trading, options trading strategies, stock options trading, stock trading1
|
Leave a comment
Options Trading Mastery: Factors that Affect Straddle Prices
Since the Straddle’s profit potential depends on its price from purchase time to expiration, the investor should be aware of the factors that affect the Straddle;s price. Several factors affect a Straddle’s price. The first is, of course, stock price. The stock’s price dictates the value of both components of the Straddle – the call [...]
Posted in Investing, Options
|
Tagged options trading, options trading strategies, stock options trading, Stock Trading
|
Leave a comment
