Go to http://ExpertOptionTrading.com/videos for more free videos on Option Strategies We have the variables that we are going to be entering - they are the stock symbol, the at the money straddle price, the range probability, the stock price, the implied volatility of the stock issue, and the historical volatility. Now, the historical volatility is not a numerical entry, but it is a judgment entry. It's probably the only judgment entry that you're going to have. Let's take a look at another issue, so we can get another idea of whether or not it's going to be a good candidate for our position. We're going to talk a little bit more about the Gamma Scalping analysis that we're going to be using. Let's take a look at a couple of issues, and how we plug them into our Gamma Scalping analysis worksheet. I've already got a few up here, which I have pre-filled in. What I want to do is, I just want to show you AVP, which is Avon Products. You can see, from a historical perspective, that the historical volatility is relatively low on this issue. Let's take a look at some of the other ones on my trading list. Let's go to the AMGN. This is a judgment call, but I would say that it's in the middle of its range, right here. Altera Corporation looks like it's probably in the higher end of its range. APC is in the higher end of its range. Aflac is definitely in the higher end of this range. CitiGroup is definitely in the high end of the range. Bank of America, definitely in the very high end of a long range. The problem with Gamma Scalping in a bear market like we've had... Let's take a look at the Dow Jones Industrial Average. We've been in a bear market, and historical volatilities are pretty high across the board for almost every single issue. In a bull market, it's relatively easy to find issues that have low historical volatility. You want to buy options when historical volatilities are low. That gives you an opportunity to pop, if the Theta increases dramatically. When we do Gamma Scalping, it's very difficult to find issues in a bear market. I say that it's difficult, but not impossible. Let's take a look at a couple of other issues here. I went through Netflix. For more Option Strategies videos be sure to check out our channel: http://www.youtube.com/user/howtotradeoptions To learn more about the Expert Option Trading course go to: http://ExpertOptionTrading.com Additional Tags ================ vertical spreads, options greeks, what is options trading, option volatility, option spreads, options volatility, how to trade in options, option strategies, index options, equity options, virtual trading, options spreads, virtual options trading, options trading tutorial, option trading strategy, options trading course, how to trade stock options, options trading systems, options training, learning options, learn to trade options, option trading tutorial, options trading strategy, option trading course, option trading systems, options trading basics, option trading basics, option trading system, options trading courses, options trading training, trade options, what is a stock option, options strategies
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Duration: 8m 35s
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