Theta Decay Explained: What Your Options P&L Actually Looks Like
We ran two short volatility trades over the past couple of months. One in TLT, one in EWY. Both had positive theta decay every single day. Both had a positive
The Volatility Surface Explained: What Your Broker's 'IV' Isn't Telling You
Your broker shows you one implied volatility number. The market prices hundreds. That single IV reading next to your option chain is a summary statistic, like describing the weather in
Volatility Smile vs Skew: What's the Difference?
SPY's 25-delta put carries an implied volatility of 29.2%. The same-delta call sits at 16.7%. That's a 12.6 percentage point gap, and it
How to Trade Volatility: A VRP-Based Approach
How to Trade Volatility: A VRP-Based Approach A trader checks the VIX, sees it above 20, and buys VXX calls because "volatility is going up." Three weeks later,
Short Straddle Strategy: Maximum Premium, Maximum Responsibility
Short Straddle Strategy: Maximum Premium, Maximum Responsibility You looked at a short strangle on SPY collecting $9.64 in credit. Then you looked at the same expiration ATM short straddle:
Short Strangle Strategy: When and How to Trade It
Short Strangle Strategy: When and How to Trade It You sold a short strangle because IV Rank was above 50. The setup looked clean: wide strikes, decent credit, manageable Greeks.
Variance Risk Premium: The Complete Guide to the Edge in Options
What Is the Variance Risk Premium and Why Does It Matter? October 10, 2025. SPY implied volatility sits at 22% while realized volatility has settled around 12%. That 10-point gap,
Iron Condor vs Short Strangle: Which Is Better?
Iron Condor vs Short Strangle: Which Is Better? The wings you buy to "protect" yourself are the exact options with the highest implied volatility on the chain. That
Implied Volatility in Options Trading: What It Actually Is (and What It Isn't)
Your options lost money because you treated implied volatility as a forecast. Everyone does at some point. You saw IV at 50% and assumed the market expected a 50% annualized