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How We Nailed The Implied Volatility Game

Oracle (ORCL) has been following a similar pattern in the last few years. They announce their earnings date on the first week of the third month of the quarter and report during the third week of the month. Yet many times the options market "assumes" earnings during the fourth week and under-prices the third week options.

See What You Are Missing

SteadyOptions started 2017 with a bang. We closed 21 trades so far in 2017, 17 winners and 4 losers, and our model portfolio is up 19.7% so far in 2017. We left the 2016 drawdown far behind, and the model portfolio is up 140%+ since April 2016. SteadyOptions 5 year Compounded Annual Growth Rate is 83.3% (including commissions).

Profit With Non-Directional Trading

Directional and non-directional are two variations of trading strategy. Directional trading strategy is simpler, but many traders are successfully using non-directional trading strategy. Non-directional trading strategy is the best option for traders who do not want to bet on the direction of the markets or individual stocks.

Expiration Surprises to Avoid

Unless buying or selling options with a distant expiration date (LEAPS), each trader understands that the value of an option portfolio becomes increasingly volatile as the time to expiration decreases. It is important to be aware of specific situations that may crush (or expand) the value of your positions. 

Betting on AAPL Earnings?

Apple is a company that tends to surprise Wall Street every time it reports its quarterly earnings, usually on the upside, occasionally on the down. As a result, the stock often makes big moves the next day - sometimes as much as 7-8%. How can you leverage those moves?

Options: The Zero Sum Game Myth

Zero-sum is a situation in game theory in which one person’s gain is equivalent to another’s loss, so the net change in wealth or benefit is zero. A zero-sum game may have as few as two players, or millions of participants. Options trading is considered by many a zero sum game. But is it really a zero sum game?

Brexit Still Affects The Stock Market

The end of 2016 may well have seen high consumer spending and a low unemployment rate, but there are concerns for 2017.The people of the UK voted for their nation to exit the European Union - a move known as Brexit, and the world awaits with different views to see the impact.

Options Expiration: 6 Things to Know

When you sell options, expiration is an anticipated event. When you own options, it's something to dread. There's much more to an options expiration, and if you are a newcomer to the options world, there are things you must know to avoid unpleasant surprises. Many investors come to the options world with little investing background.

Few Facts About Implied Volatility

The following infographic describes the facts about implied volatility, where does it come from and how to calculate implied volatility. Implied volatility is an estimated volatility of a security’s price. It is very helpful in calculating the probability and is used to adjust the risk control and trigger trades.

Early Exercise: Call Options

How would a trader like you decide to do early exercise? Say you bought calls when they were trading in the 1.0 -> 2.5 range, now underlying has risen so that calls trade bid-ask at 4.0 / 4.8 and there is strong possibility of it going higher. Also assume in another case that they trade in the 6.0 to 7.0 range.

How To Trade Risk Reversals

A risk reversal is a strategy that involves selling a put and buying a call with the same expiry month. This is also known as a bullish risk reversal. A bearish risk reversal would involve selling a call and buying a put. Today we’re going to examine the bullish risk reversal.