Why Implied Volatility Is the Key to Your “Edge” Trading Options
In this session of The Option Alpha Podcast we're going to have a very advanced conversation about implied volatility (IV) and why understanding IV is critical to gaining and edge in the market. Plus, we'll use a very specific example with YHOO and HAL, both that have IV of 32%, but when we apply IV percentiles we find out that you should be trading these stocks completely different. Buckle up - this one is intense!
In Today's Show, You'll Learn About:
- Why Implied Volatility is the key to your edge in Trading.
- Great tips, especially for beginners, on handling different kinds of trading situations.
- The 3-step process in picking the right options strategy regardless of market direction.
- Why the process of elimination is the best way to narrow down an option strategy.
- Some concrete examples of how we would select a strategy to use in the "Closing Bell" segment.