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1/n
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
2/n
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
3/n
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
