How Much Should You Risk in the Options Market?

What you really have at risk in a specific trade is often a function of whether you are long or short, and how quickly you think you can get out of a bad trade. For example, a long option has a fixed risk of the premium or purchase price. However, a short option has theoretically … Continued

Predicting Volatility with The VIX

As a technical indicator the VIX is arguably the best gauge of overall market risk and trader sentiment available to the investing public. In this article we introduce you to the VIX to help you understand what it is and how to trade it.