ARTICLE SYNOPSIS ...Trading options volatility by John Nelson and Stephen Kreis The objective in trading options is generally a rather straightforward one--buy the premiums low and sell them high. For many traders there is no need to make ""option action"" any more complicated than that. Other option investors like to take a more in-depth look at the factors that affect the premium level to develop their trading strategies. Volatility is the most important factor affecting option premiums. In fact, some traders only take positions based on volatility, and are always neutral with respect to price. Knowing volatil...