Why Implied Volatility Is the Key to Your “Edge” Trading Options

In this podcast we discuss implied volatility and why understanding IV is critical to gaining and edge in the market.
Why Implied Volatility Is the Key to Your “Edge” Trading Options
Kirk Du Plessis
Nov 13, 2014

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.

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