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Former floor-trader, Tony Battista, shares quick options trading tips he's picked up during his years of experience.

Knowing the Probability of Your Option Expiring ITM
Mar 22, 2016
Need a quick way to estimate the probability of an option expiring in the money? Take a look at the delta of the option!
Probability of Profit for Credit Spreads
Mar 22, 2016
Need a quick way to calculate the probability of profit for a credit spread? BAT’s got the math on the back of the hand calculation!
General Guidelines for Vertical Spreads
Mar 22, 2016
Looking to sell a vertical spread? Collecting 1/3 the width of the strikes will give you a 66% probability of profit.
An Easy Way to Calculate Probability of Touch
Mar 22, 2016
If your taking a little heat, stick in there! The probability of touch (POT) is approximately two times the probability of being in the money (ITM)
Delta of a 1 Standard Deviation Strike
Mar 22, 2016
The 1 standard deviation strike has an 84% chance of expiring out of the money, that means the delta for this OTM strike is 16.
Volatility Skew Between Puts & Calls
Mar 22, 2016
A put generally has more skew than the call if they are equidistant from the stock price. When selling a short strangle the put will trade for more premium
Setting Up At-The-Money Debit Spreads
Mar 22, 2016
For an at the money (ATM) debit spread we look to risk one to make one. Paying more than half the width of the spread will lower our probability of success
Maximum Profit on Credit Speads
Mar 22, 2016
The max profit you can make on a credit spread is the credit collected. You can’t make anything more than you sold it for!
New to Order Entry?
Mar 22, 2016
The only thing you can control is trade entry! With a defined risk spread, your risk and reward is defined when the trade is entered.
Understanding How We Derive IV Rank
Mar 22, 2016
We like to sell premium when implied volatility is high. But how do we know if IV is high or low? By ranking the current IV against the historical IV!

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