6 Ways To Make Better Options Trades

AAA

When it comes to buying options, most traders focus on the premium paid rather than the potential returns. While this is important information in terms of making a calculated trade, many options traders tend to lose sight of the probability of the market reaching and exceeding its position's strike. The average monthly range of the market number provides perspective on two important elements of an options trade: whether volatility is expanding or contracting and whether the market has a chance of reaching and exceeding the breakeven point of the position. Read on to learn more.

You May Also Like

Related Articles
  1. Options & Futures

    Options -- Accessing Stakes In Apple At Less Cost

  2. Trading Strategies

    Risk Management Techniques For Shorting Call Options

  3. Trading Strategies

    5 Ways To Adapt To Tough Markets

  4. Trading Strategies

    Day's First Trade Can Serve As Support/Resistance

  5. Investing Basics

    The Strange New World Of The Bitcoin Exchange Futures Market

  6. Options & Futures

    These Are The Top Brokerage Firms For Options Trading

  7. Trading Strategies

    Trend-Range Alternation Spawns Trading Styles

Trading Center