IV drop or crush is generally good for sellers. Increasing IV is good for held calls/puts. In general, you want to sell when IV is high and buy when the IV is low. IV, IV crush, and how IV affects pricing. Cheap, but almost certain to expire worthless unless there is explosive movement. Very OTM: Not a real definition, this is essentially a lottery ticket. OTM: Out of the money price is at least a few strikes from the current stock price. NTM: Near the money strike is above the stock value, but fairly close. If the stock moves favorably, an ATM option’s delta will rapidly increase. Can be very effective with moderate - long term expiry. ITM: In the money strike is below stock value.ĪTM: At the money strike is just at or above the stock value, often very highly traded. Understand all the Greeks at a high level, as you get better understand them well. Understand delta in general and how delta changes with ITM and OTM options. This is imperative since it's attrition when buying and a payout when selling. You can lose a lot of money when selling "naked", theoretically unlimited. You can lose your entire contract value when buying. Investopedia has tons of great investing info for stocks and options: “Upcoming” lists live webcasts you can watch and ask questions in, even if you aren’t a customer.
#Arrsync options reddit free
Tasty Trade (TT), E-Trade, and Ally Invest have helpful articles and videos.Į-Trade has many free webinars open to anyone. Part 2 - Advanced beginner, Intermediate, and Advanced strategies. Part 1 - Beginner, training, links, and concepts focused. I’ll cross-link each post so you can easily jump between. This guide has gotten so big it is too long for one reddit post, so now it’s two parts. I also tried to organize this better as it got longer. Some painful lessons learned are now included. Per requests, I added details of good and bad trades I made. I plan to keep typing up more info from my notebook, expanding this guide, and posting it every couple months.Īny feedback or addition requests are appreciated This will hopefully be a good starting point, teach you a lot, improve on your existing skills (if you already know the basics), and make you a better trader. While I feel I’m a successful trader, I'm not a guru and my advice is not gospel. This should especially be useful for newbies and growing options traders. I spent a huge amount of time learning about options and tried to distill my knowledge down into a helpful guide. This should be really useful for newer traders, I hope it helps. It has significantly more content than last time.
#Arrsync options reddit update
With all the new blood in the options community, I thought it was worthwhile to update my Options guide and re-post it.