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Option Generator provides crystal clear analyses on selecting quality companies and combining these with covered call trades. 

Generally, volatility frightens investors around the world as they might think that there are no safe places for income investors ... more

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Measuring Interest-Rate Sensitivity In Low-Volatility Stocks: Difficult Exercise!
Low-volatility stocks provide us with quality, predictable cash flows, clear growth trajectory, perfect management execution, smaller drawdowns and smaller rallies. The SPLV has performed beautifully but will it continue to do so?
Low-Volatility Stocks, Put Skew And The Consequences Of Low IV
Offering insight into the powerful statistical evidence of selling wide strangles, diversifying into several industries and why low-beta stocks are very attractive from a premium seller standpoint.
Market Outlook As Of October 27, 2019
Since mid-October we’ve seen a clear switch from growth and low-beta stocks to value stocks, just like in mid-September a few days before the market sold off nearly 4% in a short period of time. Today, I spot exactly the same situation.
Correlation And Short Vega: Let's Do The Math
Spreading the risk via purchasing bonds and stocks does reduce your standard deviation, but it doesn’t provide you with additional returns as bonds and stocks show strong negative correlation.
Structuring A Short Strangle Portfolio: Why IVR, Portfolio Sizing And Research Make Total Sense
Changes in volatility have a major impact on short-term and long-term options. The stock market is unpredictable and so is implied volatility.
Gamma Risk & Extending Duration: Why You Should Pay Attention To Rolling Out In Time
Hamma is the highest for ATM options courtesy of their binary nature (50% chance of expiring in the money, 50% of expiring out of the money) and increases along the way and the more volatile the underlying, the lower your gamma risk will be.
Managing Winners, Managing Early And Managing Based On Theta
“Managing winners” is a concept laid out by tastytrade, whereby one closes his/her position when 50% of the initial credit received is reached.
Adjusting Your Short Strangles Throughout The Options Cycle
By selling a put option, we receive a specific amount of cash premium and as long as share value remains above the strike, we can count that entire premium as maximum profit.
Rolling The Untested Side In Short Strangles: Demystifying The Mathematics
When selling options, it is important to be able to evaluate what's going on in our portfolio in order to keep track of our breakeven points, profit targets and exit strategy opportunities.
Keeping Your Short Options Position Until Expiration: A Good Idea?
Managing your trades or adjusting them to reduce your risk is essentially what the whole concept of successful options investing is all about.
Understanding Overstated Implied Volatility
The reason why we sell options and capture premium is because of the high likelihood that implied volatility is dramatically overstated compared to what it actually has been over a certain time period.
Option Selling And Dividend Growth Investing: AbbVie, Cisco, Altria, Chevron And PepsiCo
How to benefit from elevated volatility by selling options while receiving a nice credit and corporate dividends.
Market Outlook After Last Week
We have to prepare ourselves for several scenarios and it's just a matter of taking profits quite early to reduce risk and avoid unsatisfactory results.
Adjusting Our Options Trades During Volatile Times And When To Take Profits
When economic data spark a lot of volatility and heavy short-term market declines, we have to react in order to manage our short option positions and avoid unpleasant situations.
Market Outlook As Of Aug. 17
Is it time to buy the dip?
Why The Implied Volatility Rank Is Critical To Successful Option Selling
What's the merit of selling options? Income of course. But what makes selling options so lucrative compared to more traditional investments?
1 to 16 of 33 Posts
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