Examining the Volatility of Options

The volatility of options has been acknowledge by traders and self-directed investors.

But is it true.

One reason that traders believe the volatility of options is high is because of the expiration dates. The volatility of options, they say is because there is an end time and at that time people must relinquish their position, no matter what. Stocks, on the other hand, have technically an infinite time horizon decreasing the amount of action that goes on in trading stocks.

Therefore, the volatility of options is higher.

However, in light of recent market maneuvers, stocks are not without extreme volatility. And, the volatility of options can decrease the volatility of stocks. How so? By using options, the trader can reduce risk of negative movements of stock prices. (Of course, options can be used in asset classes other than company stocks.)

Online Investing AI will develop systems that uses volatility to the clients advantage--whether it is the volatility of options or the volatility of stocks. In fact, volatility, if properly traded, can produce higher returns at lower risks than other trading strategies.

Another advantage: it's an automated trading system, so it makes the trades directly to the investor's compatible brokerage account.

For more information about autotrading software, check www.OnlineInvestingAI.com and learn how to Get Rich Smart.