We saw a bit of a break from volatility this week…
But like I mentioned a few days ago, these markets are some of the toughest I’ve ever traded.
So for you traders out there struggling to find quality returns because of expensive options premium, know that even seasoned pros like yours truly haven’t had it easy.
This is a market unlike any other that I’ve traded in.
Normally we have one or two major factors impacting global markets…
We should all know by now that the past three years have been anything but normal.
Pandemic-related production issues, supply chain bottlenecks and raging inflation have all been compounded in recent weeks by the conflict in Ukraine.
That spike in implied volatility has made trading that much harder with expensive options premium…
My Favorite Way to Trade Expensive Options Premium
Implied volatility is a critical factor in options pricing. And when uncertainty goes up, so does the cost of trading…
Even if you can afford to trade the expensive options premium, market makers are expecting those big swings
So when it cools off, it can offset price fluctuations in the underlying stock and suppress the explosive returns we’ve come to expect.
I’ll be honest… I don’t trade expensive options. I don’t know how people do it without getting a head full of gray hair and wrinkles.
When volatility rages the way it has, selling premium is something traders can do to get some bang for their buck without having to pay through the nose on straight call or put options.
Traders looking for more guidance for selling premium and trading spreads can check out my Weekly Trade Alliance strategy.
Every week, I give instructions on a new options spread position along with a bonus call position members can choose to take to help bolster their trades.
Check out the quick video below and let’s talk about expensive options premium… and how to get around it.
Don’t forget you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading on WealthPress.com!
P.S. With the stock market as choppy as it’s been…
Thanks to a little-known market “error,” I’ve been able to set up weekly opportunities on stocks that hardly even move!
Even if the stock barely goes up… or stays the exact same… and even if it falls…
My Point30 Formula can take advantage!