Option Trading Strategies

The concept of option volatility is one of the most little understood and under utilised in option trading. But knowing about it can make all the difference to the profitability or otherwise, of your trading decisions. It should also be very influential in the type of trades that you decide to put on.
What is [...]

Not all volatilities are constructed equal.  It is critical to differentiate between Historical Volatility and Implied Volatility, so retail traders learn how to trade options focused on what is material to theoretically price option spreads forward.Historical Volatility (HV) measures past price movements of the underlying asset recording the asset’s actual or realized volatility.  The more [...]