Chase the Chop or Sell Premium?
Learn To Trade Options with John Carter. Get options trading strategies and options trading tips from a professional options trader. Simpler Options provides a daily options trading newsletter with video analysis to explain option trading and help in your understanding of options trading.Option Trading Strategies | Online Training |
Home    Free Options Trading Videos    Become a Member!    Blog    Refer A Friend Program    Login
home | Free Options Trading Videos | Chase the Chop or Sell Premium?

Chase the Chop or Sell Premium?

John F. Carter - December 23, 2015

When markets are violently chopping around like this, directional trades create both more risk and potential frustration. While everyone is banging their heads back and forth trying to figure out which way the FANGs are going to move next, option sellers are taking advantage of the uncertainty to collect some premium. Note that I said some premium. Selling spreads, straddles and strangles here and buying them back at 50% off is a very healthy way to make a living in these violent, narrow ranges.