Want to build your options trading framework? Trader with over 20 years of experience answers
Option traders should consider several factors before entering a trade, according to professional trader Rajesh Sriwastava. Option Greeks are measures showing how sensitive the price of an option is to changes in market factors, which traders can use to identify a trade’s risk and potential earnings, he said. Implied volatility, assessing the possible risk and reward, and monitoring volume data are other critical factors.
