Tech Earnings Trap: Beware of Implied Vol

[NomoNono2 10]

A major barrier to option trading for the average retail investor is the complete lack of relevant and pertinent information available regarding the intricacies of options. Anyone that has attempted to learn option trading from scratch knows how painstaking a process it can be. Outside of the "online training courses," which typically cost upwards of $1000; the web is somehow void of any option related study materials beyond the absolute basics found on Investopedia and similar websites. (I find it ridiculous that step by step tutorials can be found on how to build a nuclear generator in your garage, yet its nearly impossible to find info on intermediate to advanced combination strategies?!) Intent on learning all the ins and outs of options but lacking the funds to pay for an expensive class, I was led to a place typically dismissed by anyone under the age of 30, the library. Over the past 36 months, I have read every option related book in my state library system, and have scoured online book retailers for any other texts recommended by astute bloggers and other investors I respect. Through much trial and error, I have come to find what works and what doesn't when applying many of the option strategies and theories out there. While no trading vehicle is perfect, it is my belief that options are the best way to trade in this highly volatile, up and down market with which we must now contend. Thus, it is my intention to provide insight and commentary into a world often described as too risky for the average retail investor.

 

To this end, I recently published what I hope to many informative articles on Options trading and welcome everyone take a look, let me know what you think and hopefully foster some fruitful discussions regarding the many intricacies of options trading.

This initial article provides an in-depth analysis of a mistake made by many new options traders, paying way to high of a premium for options in the dates just leading upto qtr earnings when Implied Volatility is highest as I demonstrate in the article. In addition, I show how steps can be taken to anticipate and possibly profit from these consistent IV spikes.

[guyentlab000 10]

I started sseriously trading just about 4-5 months ago. I used a very good book on technicality, which is named "option made easy". Prior to that I ahve been just trading stocks on and off for about 6 years. Man, in just last 2 months I hit two jackpots, I almost doubled my cash and made about 30k$. However I did a very good homework on this though.

[Larry1234 10]

Even I believe that the option trading is really a good platform to make huge money in a short time frame and that too without taking much risk. We can easily frame option strategies depending upon our risk appetite and can gain a significant profit irrespective of market movement.

[Auole 10]

NomoNomo, Yes please. Where is the article? i for one do Not know how to option trade this market. Thanks.