We talk about options all day, but what is the primary function behind whether or not buying or selling options can turn into profits? Today’s Market Measure segment answers that question with a show of howare tied to movement in the markets.
Tom and Tony walk through how short options trades profit from a lack of movement, and vice versa for long options strategies. Then, the guys show off a recent study committed by the Research Team that uses five stock indexes and five single stock examples to show which side of options trading has been historically profitable.
They compareand its implied moves to actual historical movement in the market to show that short options strategies have been the most historically profitable. The details are all present in the above segment. Check it out for some greater context.