The Option Premium

Building The Option Premium has been one of the most rewarding things I have ever done professionally. Not because of any metric or milestone, but because of the conversations, the questions, and the feedback I receive from people like you. Traders and investors who are serious about their craft, who want to understand what they are doing and why, and who are tired of the noise that dominates so much of this space. As many of you already know, I have grown this community entirely organically. No paid advertising. No affiliate deals. No clickbait headlines promising 500% returns on a lucky trade. That has always been a deliberate choice. I believe that the right way to build something in this industry is to earn it, one subscriber at a time, through consistency, transparency, and genuine usefulness. That means the single most powerful thing that can happen for this community is a simple word-of-mouth recommendation from someone who is already here. If you have found value in what we do together, whether that is through the trade alerts, the educational content, the IV analysis, or simply a different way of thinking about risk and probability, I would be deeply grateful if you shared it with someone who might benefit. A fellow trader. A colleague. A friend who has been trying to figure out options and keeps running into the same dead ends. Or broader still, a trading group, an investing community, a forum where serious people are asking serious questions and deserve a serious answer. You don't need to sell anything. Just tell them what you told yourself when you decided to be here. I am not trying to be the loudest voice in the room. I am trying to be the most useful one. And with your help, I believe we can keep building something that stands for something in a space that badly needs it. Thank you, sincerely, for being part of this. Andy

🏷️ Sell the 95 put on a stock worth owning, bank 1.00, hold the cash. Above 95, the premium is income. Below, you bought a wanted name at an effective 94. The only strategy where the fallback plan is getting the thing you wanted at a discount. #cashsecuredput #optionstrading

Click to read this week's issue of The Option Premium. theoptionpremium.com/p/the-o… #OptionsTrading #Markets #Investing

This one has been helpful to quite a few so far. Curious to see how long it will take the $VIX to fall below 20 this time around. Will we see the median?

Curious to see how $NVDA fairs over the next expiration cycle.

$NVDA $MU $SOXX

Implied volatility is a percentage until you convert it. Price times implied vol times the square root of time gives the one standard deviation expected move. For $NVDA at 181.60 and 62.6 percent, that is plus or minus 7.2 in one session, 16 in a week, 20 through the eight sessions to earnings, and 33 over 30 days. The earnings window matters most: 161 to 202 is the range the market is pricing. A strike placed inside that band is a strike the market thinks has a real chance of being tested.

$SPY #200day

⏱️ 17 times since 2000 the $VIX has closed at 28 or higher after sitting under 20 within the prior two weeks. Median time back under 20: 26 sessions. Range: 5 to 243. Spikes decay. Nobody knows which clock this is. Please repost. $SPY #OptionsTrading

📏 Same formula, two days. Wednesday: SPY 766.81, VIX 16.61, expected 30-day move plus or minus 36 points. Tonight: SPY 733.00, VIX 28.11, plus or minus 59. The band got 62 percent wider in one session.

📊 6,752 trading days since 2000. Today's 4.41 percent drop is in the left tail: 34 days were worse. One day in 200. Rare, not unprecedented. #Markets #Nasdaq

A quick note for paid subscribers: expect to see several alerts in all three publications over the next few days.

🗝️ Credit spreads for the active seller. The Wheel for the income investor. PMCCs for growth at a fraction of the capital. Three services, different structures, one methodology underneath: variance risk premium, IV Rank, momentum, the 200 day trend. Probabilities over predictions, in every alert. If someone asks what The Option Premium actually does, this is the one image answer.