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Influence of implied volatility on each and every option trading strategy

Implied volatility plays a significant role in each and every option trading strategy. It has a direct impact on the price of options and can affect the profitability and risk of different strategies. Here’s how implied volatility influences some common option trading strategies: Buying Options: Selling Options: Volatility Strategies: Spread Strategies: It’s important to note […]

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Option trading strategy and risk management

Option trading strategies and risk management go hand in hand. Effective risk management is crucial to protect your capital and navigate the potential pitfalls of options trading. Here are some key elements of option trading strategy and risk management: Define Your Risk Tolerance Understand your risk tolerance level before entering any options trade. Assess how

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