Rising bond yields are starting to create a problem for stocks and helping to increase volatility. The CBOE Volatility Index (^VIX), a measure of volatility, is up 16% over the past month. But that creates an opportunity for options traders, TappAlpha Founder and CEO Si Katara tells Yahoo Finance. “Options are connected, sort of, to the reward of volatility. So, the more volatility you get, the more option premium is available for any particular risk profile. So it creates a really interesting moment for options-related strategies, options-related ETFs, and options-related traders in order to take advantage of that volatility.” Watch the video above to hear Katara explain what a covered call is and some of the reasons why investors trade options.
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