Why You Should Use Implied Volatility to Buy and Sell Options

[@majida4103]

That explained simple and easy as always Thank you very much

[@TackleTradingTeam]

Thank You! Here is a link for the upcoming FREE Master Trader Options Course: tackletrading.com/master-trader/

[@TackleTradingTeam]

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[@patchyoung5295]

wow, just learned how to create a stop lost trade. Had to stop many times but finally figured out. Thank you so much!

[@harrismoore2160]

Excellent video... Straight to the point and full of gems. Thank you.

[@ryanabbeyseon]

If you’re expecting volatility to go up then an OTM call sounds like a better option…

[@yodailyspazz8038]

Why?

[@DerMeister821]

@@yodailyspazz8038 You would want to buy an option at a lower volatility since it will be cheaper and you will get more price appreciation while holding it (if all goes as expected). I sell options (covered calls), and try to do it during higher periods of volatility to collect more premium.

[@conwayGAMES]

very informative, thanks!

[@TackleTradingTeam]

Have you tried the 15 day free trial? Or the free consultation? Jump in we can set you up on the right path so you don't waste time & money. We also have some great labs that are system specific from basic to advanced. Hope to see ya there. Email us with any questions, we have a great community of traders and investors for you to connect with.

[@curleyboy96]

Hey @Tackle Trading. Can you explain why you wouldn't have bought the OTM Call option for 4.40c instead of the 7.00c one? You assume the price would go up so the 4.40c cheap premium would still be ITM assuming the price and volatility rose in the future. Thanks.

[@user-ht7jt2gr5j]

Yes, according to his analysis the stock is going up. But by buying an OTM call the Increase to Implied Volatility is lesser % therefore the Upward Move has to be much more to get the same gain as buying an ITM call. That's my understanding. Hopefully that will help you!

[@scarfo441]

vol is extremly important...ive seen underlying go up in value but because the iv decreased,the option value dropped..thats weird..usually when the price of an underlying goes up,vol drops,has that ever happened to you?

[@micahthompson3762]

Daniel- You touched on a key component that many option traders overlook and the very reason why they often lose.

[@wp_seis_quince5016]

can you get that historical IV subchart indicator on webull? how?

[@ginopoore]

Hi WP, trading coach Gino here. I am not sure if that is possible on Webull. I am no longer using Webull myself. There is much more flexibility to using TOS. especially for options and indicators since you can get into the coding and customizing. We do have some students in our community that discuss subjects like this all the time in our trader chat which is through our Discord channel. They are doing some amazing stuff in there. If you aren't in the community yet, definitely jump in there.

[@rawsip1361]

Only channel that explains in a simple way how to use IV

[@TackleTradingTeam]

Thank You! Are you a member of our Phoenix Lab? We are going over Volatility strategies this month.

[@vgrooveman7739]

Well real well done and short to the point!

[@deepak.finance]

I am taking a break for a day to think thru this... Still can't believe there was a ton to learn in 7:42 minutes video.

[@keyurshah1632]

I learned something. Thank you.

[@TackleTradingTeam]

Glad it was helpful!

[@Alch8Fi153]

Thanks much for this! 🙏 Do you all offer more in-depth videos/educational content, such as this one, which discuss the intricacies and nuances of entering and exiting options trades, coupled with how to strategically scale in and out of trades, at optimal price levels, for max profitability, whilst eliminating unnecessary losses?

[@TackleTradingTeam]

Hi, @C-R. Alyxandr. Yes, we do. We have the Trading Labs, which consists of hands-on trading classes with a head coach. One of the teams, Phoenix, covers exactly what you are looking for. Please visit this page to learn more and sign up for a 15-day free trial: tackletrading.com/store/trading-labs/

[@elvd7437]

Thank you very much. You deserve to be thanked. I have lost thousands on worthless subscriptions. when you ask how to use stop loss, they will give you silent responses. Thanks again, I now know how stop limit is used to save my trades.

[@kayjc0975]

That's a very good video with the screen nicely zoomed in ,bit helpful on implied volitility,

[@edmandell3064]

I wanted to clarify/ ask a question. When buying an option you like IV to be lower ...however, after you buy it you want IV to rise? When selling an option you like IV to be higher ....however, you want IV to drop after you sell to open? AM I right?

[@TackleTradingTeam]

Did u say options?? I have been trading them for almost 26 years. I have a trading lab at TackleTrading.com called " Phoenix Lab". We are just finishing up the series on Long Calls & Puts. It's archived in there. Also, we are starting option spreads basics this coming week. A thru Z to make you really understand options. Have you tried the 15 day free trial? Or the free consultation? Jump in we can set you up on the right path so you don't waste time & money. We also have some great labs that are system specific from basic to advanced. Hope to see ya there. Email us with any questions, we have a great community of traders and investors for you to connect with

[@TackleTradingTeam]

Yes you are correct on IV

[@crazy3rdgen]

Can you still make money if your call option is out of the money if the IV shoots up and premiums go higher with it? Higher premium than you paid.. hummm

[@noahdavidson1248]

Sean, To answer your question, yes, if you own OTM options and I.V. increases, the premiums will shoot up. Under normal market conditions, the best time to anticipate a rise in IV is heading into earnings, so we can buy the options with 3-6 months worth of time 2-6 weeks before earnings there are good odds that the I.V. will increase. In current market conditions, I.V. may be harder to anticipate. It is worth noting that on average when prices rise, I.V. tends to drop, unless there are other underlying conditions like approaching earnings for example. otherwise long calls can have a challenge with I.V. dropping a little as prices rise. (one of the tougher parts about swing trading with long calls is the i.v. drop that can occur when prices rise.). Hope that helps.

[@Jason-et7yz]

actually a easy explination!

[@jimd1617]

thank you

[@TackleTradingTeam]

Appreciate your comments, we do our best to get the best research and trading education out there to you.

[@oahukiteboarder808]

well done! Very well done.

[@Speciation]

Loved the explanation. Impl . Volatility shows different on different platforms. Thinkorswim, tastyworks, etc. Is it because they calculate it differently?

[@austin_mcmichael]

Yes. May use different ranges of options or a different formula

[@ThetaQueen]

Thanks Noah #TeamTackle

[@SusieO]

Very good video - thank you.

[@TackleTradingTeam]

Glad you liked it!

[@jonniebrasco68]

How did that trade go?

[@aerotrade1826]

good job coach

[@jasonpermanna308]

does increase in implied volatility mean stock going higher? I thought going down increase as well

[@wiseman4160]

Implied volatility has been known to go up despite a stock not going up much. Other times it goes up as stock price goes up. If Implied volatility has doubled since you bought it, say for example bought stock at 20% volatility and now it's 40% or higher that would be bad time to follow Wall Street rule let your profits run. Sell half or all your shares. Another exception would be wake up 9am and your stock went up $6 a share or more overnight, also be a great time to sell.

[@TackleTradingTeam]

Not exactly higher, it means it could move more in either direction than it currently has been. It "Implies" there might be a bigger move, but not just up, maybe down also. Are you in our Pro trading program at Tackletrading?

[@tobyz.3452]

Noah, Very interesting look at using Volatility, How did you overlay the Hist.Vol and ImpVol?

[@danarobinson6670]

Open edit studies (TOS little flask top row) click lower study you want to move and then drag and drop into the one you want to overlay into.

[@Ewang2727]

this guy talks like charlie from it's always sunny

[@jllerenab]

this is a F nugget. thank you

[@DonRivera]

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