Options Trading FAQs

By , CEO of Volcube.

Since 2010, we have received many great questions from Volcube users; options traders of varying degrees of experience. We always give as in depth an answer as possible to questions about options trading, relating to both the theory and practice. So we have decided to publish some of these questions along with our responses. Hopefully this will be of great value to option traders everywhere and of course to Volcube subscribers. Feel free to follow up with any questions via [email protected] and we’ll be happy to clarify anything.



How is the Volcube TPI calculated?

Is my TPI penalised for sitting out on trades?

How can I learn about options trading apart from using the Volcube Levels?

How does Volcube generate the market price and order flow data?

Pricing options

Can you explain the relationship between implied volatility and option value?

Is estimating implied volatility similar to estimating the market value?

How to improve your option pricing accuracy

Option Risk Management

Why do I keep breaking my risk limits in Volcube?

Why is the gamma risk limits tied to the theoretical profit, and not the position gamma?

How are the Volcube Vega and Gamma risk limits and the Volcube Risk Metric calculated?

How do I learn to manage option risk in Volcube?

How does the risk from long gamma compare to short gamma?

Option Greeks and options trading strategies

Can basic delta hedged positions become dynamic delta hedged position?

Why might a trader prefer a strangle to a straddle?


Have a question for the author? Happy to help! Email [email protected].



The Best-Selling Volcube Ebook on how NOT to lose money with options

Available now!

  • Volume VI – Losing Money With Options – Advanced Techniques

    Not losing money with options is a vital step on the path to being profitable with options. This volume of the best-selling Volcube Advanced Options Trading Guides details dozens of the most common mistakes and trading disasters that every option trader (whether professional or retail) will want to avoid. In depth examples and recommendations for […]

    Order Volcube Advanced Option Trading Guides - Volume VI Losing Money With Options @ $9.99


About Volcube

Volcube is the world’s leading options education technology, trusted by traders and other individuals everywhere as the fastest way to learn about options trading.

FREE TRIALS of Volcube Starter Edition : start your options education for FREE!

You can access Volcube Starter Edition for FREE. Starter Edition has been designed specifically for individuals who want to learn about options trading from home or at work. If you want to learn about options trading, try Volcube out for free today! Click here to get start your completely FREE trial.

Volcube : options education technology

Volcube : options education technology

  • Start your FREE Volcube trial.
  • * Login to Volcube via your web browser.
  • * Trade on the options market simulator.
  • * Learn from the options trading videos.
  • * Test your trading ability with Volcube trader metrics.
  • * Become a Certified Options and Volatility Trader

Find out more


Contact Volcube Support at any time on

[email protected]

Contact us

Email: [email protected]
LinkedIn: our company page
Twitter: @volcube

Copyright © 2014 Volcube Ltd.
All rights reserved