Market Data provided by CME Group & powered by dxFeed Technology. Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
Options Jive

How to Structure Your First Trade of the Day

| Jan 7, 2026
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    Options Jive

    How to Structure Your First Trade of the Day

    Jan 7, 2026
    Market participants should consider four key factors when structuring their first trade: directional assumption, implied volatility environment, timeframe, and risk profile (particularly Delta exposure). Historical data shows markets generally trend upward over time, making bullish strategies attractive for beginners, though downside moves tend to be more severe. This creates a risk/reward dynamic where bullish strategies win more frequently but face larger potential losses during corrections. Optimal trading typically occurs in the 45-day timeframe with 16-30 Delta positions, balancing gamma risk and extrinsic value. For premium sellers, high implied volatility rank (IVR) environments are ideal, while premium buyers benefit from low IVR conditions. Delta serves as both probability approximation and price sensitivity indicator, a 30 Delta option has roughly 30% chance of finishing in-the-money at expiration.

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