Many investors are often curious what is an “appropriate” volatility benchmark. In finance, the best way for us to measure the relative value of volatility is to look at historical or realized volatility. The first step in creating a useful trading signal is to develop a volatility cone. A volatility cone samples the distribution...
Read more »
The expression “you can’t squeeze blood out of a turnip” refers to not being able to get something out of someone that they don’t have. Stock option trading can often feel like trying to squeeze blood from a turnip. However, with a little effort and some patience it is possible to squeeze blood from the...
Read more »
Double Diagonal – Neutral Strategy The Double Diagonal is a neutral stock options strategy. The Double Diagonal strategy is similar to an Iron Condor and can be considered a combination of a Calendar Call spread and a Calendar Put spread. The Calendar Put spread portion of the Double Diagonal is entered by selling an...
Read more »
The real beauty of the covered calls strategy is making money on a stock, even when the price of the stock doesn’t move. Yes, it’s nice to make the extra income for a covered calls position when the underlying stock increases in price and the position is rolled, but what really adds oomph to the covered calls...
Read more »
