Hi there. Rich Howe here, founder of Stock Spin-off Investing.

For years, I’ve wanted to launch an options advisory.

Why?

Several reasons.

Reason #1

To scratch my own itch.

The first time I seriously considered options was when I read Joel Greenblatt’s You Can Be a Stock Market Genius.

This part of the book instantly resonated with me:

“In general, professionals and academics calculate an option’s “correct” price by first measuring the past price volatility of the underlying stock…This volatility measure is then plugged into a formula that is probably some variant of the Black-Scholes model…

The formula takes into account the stock’s price, the exercise price of the option, interest rates, and the time remaining until expiration, as well as the stock’s volatility.

The higher a stock’s past volatility, the higher the option price. Often, however, option traders