3option strategies to use during low volatility markets

Customer reviews
Granted, this is a wonderful thing
Smart, take the diary
I believe that this is a very interesting topic. I suggest you discuss it here or in PM.
There are no limits for sheer pleasure!
show me someone else who palled!
I think you're wrong. I can prove it.
Cool, thanks! ;)

3option strategies to use during low volatility markets3 Option Strategies To Use During Low Volatility Markets

February 7 2014

Low volatility trading is tough for option sellers like us.

When markets are calm premiums are small and narrow meaning that we cannot sell options far from the current stock price.

So whats a trader to do!?

Staying active, and keeping position size small. is important but you dont want to force trades into the market that arent right.

1) Put/Call Debit Spreads

Make some directional bets on overbought or oversold stocks. Using debit spreads, youll pay to enter the strategy and will look to pay about 50% of the width of the strikes.