Hello !
- What are the pros and cons of selling vertical call spreads as opposed to put spreads? (If any) I mean why would I sell puts over calls per se, or vice versa?
- What is a "good" IV (makes sense to) percentile to sell a vertical PUT?
- What is a "good" IV (makes sense to) percentile to sell a vertical CALL?
Thanks !
~ Emm
Question: To call or to put
Selling a call spread is a bearish play. Selling a put spread is bullish.
Look for IV above 50% to collect more premium. Volatility at extremes tends to revert to the mean (the middle or 50%) over time. So selling above 50% gives you more premium and then it tends to get cheaper to buy back as it moves back to 50%. Of course IV could expand....it is just more likely to revert to the mean than to expand.
To set up a trade and get a visual layout of where you profit/losses occur as well as you break evens simply set the trade up in your TOS "Analyse/Risk" tab. Dough.com has a very visual display if you set it up in their trade window. After using dough for a while I got to the point that I don't hardly use it anymore as I can see the layout in my head when I look at any options chain. Some people are just much more visually oriented and it really helps to see it laid out that way.
To set up a trade and get a visual layout of where you profit/losses occur as well as you break evens simply set the trade up in your TOS "Analyse/Risk" tab. Dough.com has a very visual display if you set it up in their trade window. After using dough for a while I got to the point that I don't hardly use it anymore as I can see the layout in my head when I look at any options chain. Some people are just much more visually oriented and it really helps to see it laid out that way.
Acstudio said: ↑
To set up a trade and get a visual layout of where you profit/losses occur as well as you break evens simply set the trade up in your TOS "Analyse/Risk" tab. Dough.com has a very visual display if you set it up in their trade window. After using dough for a while I got to the point that I don't hardly use it anymore as I can see the layout in my head when I look at any options chain. Some people are just much more visually oriented and it really helps to see it laid out that way.
I have been trying to use the dough platform, but it is more confusing than the tos. :(