Volatility Trading is a variable in an option pricing model used to determine the theoretical value of an option. And, among all the variables in an option pricing model, it is the only one that is derived from market sentiment. But, the market doesn’t always get it right. That creates opportunity for an options trader.

Over the years I have learned that there is no upside to emotional trading. The market is random, and if you try to guess what the next tick will be you will lose. In this post I walk you through designing a trading strategy that prevents your emotions from sabotaging your trading through the wildest of times.

Have you ever entered an options position and had difficulty understanding how the price fluctuates? Perhaps you were confused by the amount of profit or loss caused by stock movement relative to your position? If this has ever happened to you, you could learn more about delta, and how long delta strategies fits into your trading strategy.

The Iron Condor is a very useful options trading strategy. While considered "advanced" by many, once you get a good handle on the iron condor, traders at any level can use it. This options trading strategy is especially useful for profiting off of stable markets that are experiencing sideways price movements. Next up ........Iron Condor Explained.

Although volatility is often spoken of in the financial press as undesirable, long straddles are one case where you can profit from it. If you foresee major price swings in the near future. Time to learn about long straddles.

I like directional trading but for the most part directional options trading is a hobby. There is nothing better than picking a direction, applying a leveraged bet via options or futures, and watching that trade take off. Here I will explain why directional trading is just a hobby.