Covered call strategies are a favorite with option sellers. But in a volatility crush, this normally successful strategy can cause traders and investors to suffer losses for months in a row. Here’s how to navigate these waters successfully.
What does volatility mean to us as options traders? Plenty, since it measures risk and investor sentiment. Options trader Ken Trester examines why volatility is an important factor to consider before making an options play.
TradingMarkets contributor Kurt Eckhardt examines popular investment vehicles and how investors can prepare themselves for the volatility that can negatively impact their portfolio.
In this conclusion to our two part series, TradingMarkets contributor John Jagerson walks you through the potential results of applying an options collar on a long stock position.
An increase in market volatility often leads traders to find a lot more trading opportunities, but precautions are necessary. TradingMarkets contributor Richard Lee’s five rules for navigating volatile market conditions should make trading a little simpler.
The recent volatility in stocks, currencies and commodities has certainly caused most traders – even investors – to focus increasingly on self-discipline. TradingMarkets contributor Kurt Eckhardt discusses how to consistently measure risk and trade with discipline.
Knowing the fundamental reason why afternoons are the most active time in trading is nice, but learning how to take advantage of this knowledge is even better.
In the first partof this series we defined volatility and looked at its characteristics, such as its cyclical nature, its persistency and its tendency to revert to the mean. We used a simple calculation called average true range to demonstrate these inherent features. In this second installment, w