Chart Fanatics
August 25, 2026
What Options Traders Really Prioritize: Volatility Over Direction
TL;DR
Options traders focus on volatility and time decay rather than directional price movement, allowing them to profit regardless of whether markets rise or fall.
Key Takeaways
- 1Options traders prioritize volatility over direction—they care about how fast a price moves, not which way it moves
- 2Professional options traders can set positions and ignore them, only concerned that they're 'safe' rather than monitoring directional bets
- 3Options desk traders in London routinely put trades in a drawer and stop monitoring them, indicating they've hedged directional risk through volatility strategies
Notable Quotes
“They don't trade direction, they trade volatilities. They don't care about direction.”
— Narrator
“We just don't care. It's just whatever. It goes up or down. Okay, we are safe.”
— Options traders at London desk
Chapters
1. Options Trading Philosophy
Options traders trade volatility, not direction—they care about how quickly prices move, not which direction they move
2. Real Desk Experience
Options traders at a London desk would put trades away in a drawer and ignore them once positioned, confident in their risk management through volatility hedging
Glossary
- Volatility
- The rate and magnitude of price movement; options traders profit from changes in volatility rather than the direction of the underlying asset
- Options
- Derivative contracts giving the right to buy or sell an underlying asset at a set price; their value depends on price, time, and volatility