As an options trader, the volatility of the market is more than a buzzword; it's a crucial variable that impacts the value of the options you trade and the strike prices you select. Understanding how volatility influences strike price selection is vital for enhancing your trading strategy's effectiveness and optimizing profits. In this article, we'll explore the dynamic relationship between market volatility and the art of choosing the right strike prices for both call and put options.
Grasping Volatility in Options Trading
Volatility is a measure of the market’s expectation of...