Short-selling PUT is done when one is expecting the underlying equity would go up. I know open positions in anticipation of VXX going up is not a good strategy in the long run. VIX and VIX ETPs are most of the time in contango, so a question I had was “Would option time decay be […]
What is the Tasty Trade Options Trading Method? The Tasty Trade options trading method emphasizes the importance of trading high implied volatility and selling premium. This approach advocates for the selling of options because they believe that, over time, options tend to be overpriced. So, by selling premium, traders can take advantage of the rapid […]
While doing some research on how to sell Iron Condor in a low volatility environment, I came across to a video that talks about time decay made by Tastytrade. The image below is taken from the video and it shows Theta (time decay) against Days to Expiration (DTE). When it’s 75 DTE, 90% Out of the […]
I know there are people out there who manage to make a consistent 20% return by just simply selling options on major indexes such as SPX and/or SPY continuously with the Iron Condor strategy. One question I had was about Implied Volatility. Would such trades still work even in the low IV environment? Logically, it […]