Pricing & Volatility
Without a doubt we get our "edge" as options traders by mastering options pricing and volatility. Specifically the fact that long-term implied volatility always overstates the expected market move.
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IV vs. IV Percentile

Understanding the difference between a stock's actual implied volatility and IV percentile is one of the keys to your success as an options trader.
IV vs. IV Percentile
Kirk Du Plessis
Apr 19, 2021

Understanding (and mastering) the difference between a stock's actual implied volatility and that IV's percentile or rank going back historically is one of the biggest keys to your success. This is because our whole concept of trading options and selecting strategies hinges on this concept of volatility and pricing. Are options relatively expensive or relatively cheap? How do we know? How can we truly compare between different stocks? In this in-depth tutorial lesson I'll go into great detail to make sure you know exactly why simply looking at a stock's IV is not enough. And how you can figure out how cheap/expensive a stocks options are relative to the past. Buckle up because this one is intense.

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Probability of Profit vs. Probability of Touch
The difference between probability of profit and probability of touch is important because it explains why stop loss orders may actually create more losing trades.

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