Option Strategies: How to Set the Investing Habbits?

Selling For Premium
04-26

Hello everyone! Today i want to share some trading ideas with you!

1

For all the FinTwit folks that mock optionselling traders as "picking up pennies in front of a steamroller", you are only correct in a certain scenario. $Cboe Volatility Index(VIX)$

Lemme educate you ...

- High PoP + high IV edge = good for the options writer (you’re paid for risk compression)

- High PoP + low IV edge = often bad for the options writer (you’re "picking up pennies" in front of variance expansion)

Make sure you understand the options-writer's trade

That said, I'm assuming legit options-writers are not doing this, but it still warrants a reminder ... DO NOT take low PoP trades ... especially if IV edge is also low!


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