In practice, the SABR volatility model is often used in the interest rate derivatives market. (swaptions / caplets / floorlets) The SABR model...
I agree with StarDust9182 that diversification is important. In fact, there are many ways to diversify when it comes with options. Simply...
My personal favorite books on Options Trading are: <a href =...
Personally, I take an overall portfolio approach, rather than an individual trade approach. I look at the various risk parameters of my overall...
As retail traders, it would be difficult to exploit price differences between the synthetic calls / puts versus actual calls / puts. The bid /...
Option Straddles and "tax straddles" are two different things. A straddle (for tax purposes) is defined as an "offsetting position" where there...
Ultimately, the key to being consistently profitable trading butterflies, or any other trading strategy, is to apply the right strategy to the...
It all depends on how you construct and manage your butterflies. I often use butterflies as an opening strategy and adjust them as the...
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