1
/
of
1
store-traders-com
Stocks & Commodities V. 26:2 (39-45): Buying Puts And Calls With PROVEST by Jay Kappel
Stocks & Commodities V. 26:2 (39-45): Buying Puts And Calls With PROVEST by Jay Kappel
Regular price
$3.95 USD
Regular price
Sale price
$3.95 USD
Quantity
Couldn't load pickup availability
Buying Puts And Calls With PROVEST by Jay Kappel
The second article in this series discusses the details of the PROVEST strategy and how you can apply it to trade calls and/ or puts.
As discussed in the first part of this series, several key factors should be considered in determining the best option trading strategy to use at any given point in time for any given security. Likewise, these criteria can also be used to zero in on the best option or options to trade in executing a particular strategy. Selecting the proper strategy involves knowing what to look for in terms of the following variables:
Probability
Volatility
Time left until option expiration
The skew of implied volatility across strike prices and/or expiration months
Timing of market price movement.
The PROVEST option trading method criteria were developed to identify specific criteria in each of these key areas. The primary factors and key considerations are summarized in Figure 1. In this installment we will look at a specific trading strategy buying naked calls or puts and how to use the PROVEST criteria to identify trading opportunities.
The second article in this series discusses the details of the PROVEST strategy and how you can apply it to trade calls and/ or puts.
As discussed in the first part of this series, several key factors should be considered in determining the best option trading strategy to use at any given point in time for any given security. Likewise, these criteria can also be used to zero in on the best option or options to trade in executing a particular strategy. Selecting the proper strategy involves knowing what to look for in terms of the following variables:
Probability
Volatility
Time left until option expiration
The skew of implied volatility across strike prices and/or expiration months
Timing of market price movement.
The PROVEST option trading method criteria were developed to identify specific criteria in each of these key areas. The primary factors and key considerations are summarized in Figure 1. In this installment we will look at a specific trading strategy buying naked calls or puts and how to use the PROVEST criteria to identify trading opportunities.
Share
