What's Our "Edge" Trading Options?

http://optionalpha.com - Every successful business has some sort of "edge" that gives them a long-term advantage over someone else or in the marketplace. As traders, our edge comes by way of implied volatility always exaggerating the expected move of a stock's price, thus meaning that long-term all options are theoretically overpriced and expensive. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps ================== Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers ================== Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership ================== Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. Sir great video but I don't understand few things. Like in an insurance there have to be huge no. of buyers for insurance company to make money. Same way here we are the insurers. But we will be selling a single contract(may be 10) in a month that to at a same price. What if price of stock shoot up higher than that value. We will loose in all of them. How is that sinerio taken care of.
   As you said that if IV is high we should sell contract . But in this scenario changes of us loose will be more as price movement will be more.
   Similarly in case of Low IV as price movement is very low , chances of us loosing oney will be high as there are more chances that price will not cross the strike price
2. great stuff great teacher
3. Funny how i watched hours and hours and hours of tasty trade videos to understand some of it, in freaking 5 minutes of watching a certain part of this video I understood everything, you explain things so well seriously. I was breaking my HEAD over there.
4. Just beginning to learn this. I actually understood. Thank you.
5. What's the trading fees look like with that kind of consistency? I use an online broker at $10/trade...
6. You say in your videos that you mostly teach "selling options'. Doesnt this take alot of margin? For people starting with 5 or 10k, this might be a problem. I have TOS and I dont really understand how much margin I need to sell options
7. Outstanding video explaining the importance of trading small so your edge can yield big results in the long term. Use of analogies and visual aids along with clear explanations makes this a great presentation.