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Annualized volatility describes the variation in an asset's value over the course of a year. This measure indicates the level of risk associated with an investment.
Often times when new traders go through their first couple earnings cycles and experience large moves in the underlying stock, it can feel almost natural to want to buy contracts via a long straddle earnings option strategy as opposed to selling options the way we teach here at Option Alpha.
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| | | | | | VA - Soulful House Selections Vol 3 (2012)

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