So I have the grand sum of four gbp so far, but I am not complaining. I’m continuing the wheel. Let’s take a look at ford on the daily chart: The RSI here is 55.00 ish. The weekly chart: Rsi is 52.04 So it’s looking a bit toppy really, meaning the next put is going...
Author: Jake Black
Second Ford Trade
So I placed a second trade ever, selling a put on Ford. I sold it for a strike of 9.00 for a premium of 4.00 (in total, i.e. one contract of 100 shares means I received a premium of four dollars (as far as I understand). The contract was for four days out in the...
First Successful Trade – Selling a Put on Ford
So yesterday, after the hoops and hurdles, I actually placed my first ever options trade, and I want to go through the screenshots I took from Interactive Broker and explain the data. The finish order is: F April 17 25 9 Put 1.94 Screenshot One IV (in the centre above the chosen strike) 50.7 VWAP:...
First Attempt at the Wheel – Ford
So this is my first attempt at running the wheel. I’ve put 1100 gbp in my account and will try making a cash secured put. My feeling of the charts is that … I might get assigned! So perhaps lets start a little cautious. My First Options Trade: Selling a Put on Ford (F) –...
Selling an Option on Interactive Brokers
Explanation of the Interactive Brokers Order Screen for a Potential Covered Call I own 100 shares of a stock, purchased at the current market price of £10 per share, totaling £1,000 (£10 × 100). I have not yet sold any options but am exploring the Interactive Brokers platform to understand the implications of...
Understanding Options Trading with Interactive Brokers: Maximizing Premiums on National Grid Shares
As someone new to options trading, I have begun exploring the capabilities of Interactive Brokers to enhance my investment strategy. I currently hold 100 shares of National Grid PLC (NG.) through another broker, acquired at an earlier date. My objective is to generate the highest possible premium by selling call options against these shares, continuing...
Understanding Put/Call Volume (P/C Vlm) for Options Trading on Interactive Brokers
In this article, I’ll break down the concept of P/C Vlm (Put/Call Volume) in a way that’s easy for beginners to understand. Since the screenshot I’m working with doesn’t provide a specific number for this metric, I’ll explore a range of possible values and explain what they mean for trading National Grid PLC (NG) options....
Understanding IV Rank and IV Percentile for Options Trading on Interactive Brokers
If you’re new to Interactive Brokers (IB) and options trading, you might have come across terms like IV Rank and IV Percentile on the platform and wondered what they mean. Don’t worry—this article is here to help! We’ll use a real example from National Grid PLC (NG), a stock on the London Stock Exchange, to...
Understanding Options Historical Volatility on Interactive Brokers: A Beginner’s Guide
For beginners navigating the Interactive Brokers platform, the options page can feel overwhelming, especially with terms like Implied Volatility (IV) and Historical Volatility (Hist Vol). This guide uses a sample screenshot of National Grid PLC’s options data to explain these concepts simply, helping new traders understand how they affect option prices and what to look...
What Is Implied Volatility (IV Last)? A Guide for New Investors
If you’re new to options trading and exploring platforms like Interactive Brokers, you might notice a term called “IV Last” in the options chain for stocks like National Grid PLC. In the screenshot, it shows 18.8% for National Grid’s options. This number, implied volatility (IV), can seem confusing, but it’s a key concept for understanding...