Why We Sell High Volatility | Understanding IV Rank скачать в хорошем качестве

Why We Sell High Volatility | Understanding IV Rank

If you understand this one concept, it can completely change how you think about selling options. In this episode, we break down the core reason why selling high implied volatility has been an effective long-term approach for premium sellers. We walk through how implied volatility and implied volatility rank (IVR) are used to identify elevated pricing environments, and why an IVR around 30 or higher has historically served as a strong reference point for short premium strategies. More importantly, we focus on the “why” behind the strategy not the mechanics. There are two primary forces at work. First, volatility naturally tends to live on the lower end of its range over time. Second, volatility has a well-documented tendency to mean revert after spikes driven by fear, uncertainty, earnings, or macro events. When elevated volatility contracts, option prices fall creating a potential tailwind for premium sellers. Helpful links: tastylive: https://www.tastylive.com/ FREE tasytlive Newsletters: https://info.tastylive.com/newsletters FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 Follow tastylive on X (Twitter): https://x.com/tastyliveshow #OptionsTrading #ImpliedVolatility #IVRank #PremiumSelling #VolatilityTrading #Theta #RiskManagement #OptionsEducation #tastylive 00:00 Why Selling High Volatility Matters 00:37 What Is Implied Volatility & IV Rank 01:55 Why 30 IVR Is a Key Level 02:34 Volatility’s Natural Drift Lower 04:20 Volatility Mean Reversion Explained 05:49 When Low Volatility Expands 06:21 Selling Into Fear & Uncertainty 07:55 The Three Forces Helping Premium Sellers 08:54 Risks of Selling in Low Volatility 09:45 Final Takeaways tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.