The Third Dimension Of Option Trading by Don A. Singletary
ARTICLE SYNOPSIS ...The Third Dimension Of Option Trading by Don A. Singletary
Here's how you can profit from trading volatility.
Sometimes when you purchase an option, you
might see the underlying futures contract move
in your favor, perhaps enough to overcome the
time decay of the value of the option, and then
you might find yourself bewildered that a profit has yet to be realized. Other times you may be awaiting time-decay
erosion, only to find it is a much slower decay than
anticipated. More often than not, these situations are due to a
change in volatility....