All stock options trading and technical analysis information on this website is for educational purposes only.
A measure of how much a stocks price moves up and down.Stocks with high volatility have wild up and down price swings, and low volatile stocks have slow and steady price movement. You can take advantage of this volatility by selling your options at a higher cost.The only time this doesn't happen is when the expected move of the stock has already been priced into the option's value. While it is believed to be accurate, it should not be considered solely reliable for use in making actual investment decisions. Pick a trading style that fits your personality.I prefer the slow and steady way, it's more predictable. It may take awhile for everything to sink in, but once it does this will be second hand nature for you.
So even if the stock has a violent move up or down the option may not move as much as expected. I don't have the stomach to watch the stock and my profits go up and down and all over the place. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Actually, that is how I raised money to pay for my wife's engagement ring and our honeymoon.I made a few quality trades with a volatile stock and in a few weeks I was done.
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