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Volatility is EVERYTHING. EXCELLENT, EXCELLENT video, Scott! It is important also for the Options Trader to know the the key metrics of what is a high or a low IV. Two measure of the highness or lowness of the current IV are 1) Implied Volatility Percentile (IV%) and 2) Implied Volatility Rank (IVR). THESE ARE NOT HE SAME. IV Rank is a measure of the volatility of an underlying security relative to itself, relative to its 52 week Man/Min range, Mathematically: IV Rank = (IV 52 Week IV High - IV Current) / (IV 52 Week High- IV 52 Week Low). Because this is a ratio it is expressed in percentage terms. BUT JUST BECAUSE THE MEASURE IS A %, THAT IS NOT IV PERCENTILE. The IV Percentile is something DIFFERENT. The IV Percentile is a definition. The IV Percentile is the percent of DAYS over the last 252 trading days (one year) that the IV was LESS than the current IV. It should be known that IV Rank and IV Percentile are disparate - except at the extremes of IV highs or IV lows. In the middle (mean reversion) IV Percentile and IV Rank are usually QUITE DIFFERENT. Note also on Think or Swim> Trade Tab> Todays Options Statistics the “IV Percentile” is shown, the number they list is actually IV Rank! Here is a great Think or Swim Chart that shows the difference between IV Rank and IV Percentile: (you must have a time range of more than 52 weeks to run the study) Chart IVR IV Percentile, IV: tos.mx/KuFhQND Thanks!!
Very informative. Ty. So if I want volatility to work in my favor, should I buy and/or sell at a farther expiration and if I don't want IV to be a factor as much, I should have a shorter expiration? Do you have a video on this?
Good video. Appreciate the info. So if I am interested in trading 0DTE on the SPX, would that mean that implied volatility is less important and delta is more important, since its expiring the same day?
![What Are Options? [Difference Between Stocks And Options]](/img/1.gif)
🚨What topics would you like us to cover next? 🚨Let us know below.
👇CLICK READ MORE TO GET OUR DOWNLOADS👇
👉💸Summary Guide / Cheatsheet Of Implied Volatility For Options Trading: app.prospertrading.com/scott-bauers-implied-volatility-cheatsheet?RUclips&
👉💸Get Scott's Weekly Watchlist For Free Here: secure.bauerspowerpicks.com/scott-bauers-free-watchlist/?RUclips&ScottWWLtoSesh
👉💸Get A 1-on-1 Option Strategy Session With Scott's Team Here: secure.bauerspowerpicks.com/free-strategy-reveal-session/?RUclips&Scott1on1sesh
Volatility is EVERYTHING. EXCELLENT, EXCELLENT video, Scott!
It is important also for the Options Trader to know the the key metrics of what is a high or a low IV. Two measure of the highness or lowness of the current IV are 1) Implied Volatility Percentile (IV%) and 2) Implied Volatility Rank (IVR). THESE ARE NOT HE SAME.
IV Rank is a measure of the volatility of an underlying security relative to itself, relative to its 52 week Man/Min range, Mathematically:
IV Rank = (IV 52 Week IV High - IV Current) / (IV 52 Week High- IV 52 Week Low).
Because this is a ratio it is expressed in percentage terms. BUT JUST BECAUSE THE MEASURE IS A %, THAT IS NOT IV PERCENTILE. The IV Percentile is something DIFFERENT. The IV Percentile is a definition. The IV Percentile is the percent of DAYS over the last 252 trading days (one year) that the IV was LESS than the current IV.
It should be known that IV Rank and IV Percentile are disparate - except at the extremes of IV highs or IV lows. In the middle (mean reversion) IV Percentile and IV Rank are usually QUITE DIFFERENT.
Note also on Think or Swim> Trade Tab> Todays Options Statistics the “IV Percentile” is shown, the number they list is actually IV Rank!
Here is a great Think or Swim Chart that shows the difference between IV Rank and IV Percentile: (you must have a time range of more than 52 weeks to run the study)
Chart IVR IV Percentile, IV: tos.mx/KuFhQND
Thanks!!
Very informative. Ty. So if I want volatility to work in my favor, should I buy and/or sell at a farther expiration and if I don't want IV to be a factor as much, I should have a shorter expiration?
Do you have a video on this?
Great video - Scotts explains everything about IV in the easiest way to understand.
Im shocked at how digested you made video. Absolutely nobody has been able to explain it to me
Thanks, finally a good video on IV !!!
Good video. Appreciate the info. So if I am interested in trading 0DTE on the SPX, would that mean that implied volatility is less important and delta is more important, since its expiring the same day?
Thanks.
You're welcome!
excellent video - thank u
Good video t.y
Thank you!
Hi Em Thuan! If I understand English,I don’t watch your Chanel,please speak Viet ,and I driving can’t reading