Low Volatility Trading
When volatility is low, option premium is also low compared to what it would be if volatility were at its mean. To take advantage of this low volatility, you want a trade that profits when volatility increases and is independent of the direction stock price moves. The trades that fit these criteria are straddles, strangles and backspreads.
Options Trading About Us eMail Us Option Trading Directory Some of our Favorite Option Trading Books Option Trading Systems Option Trading Strategies Tutorial Option Volatility Trades Options Trading Information Low Volatility Trading Straddle Trades Strangle Trades Backspread Trades Option Volume Trades High Volatility Trades Covered Calls Trades