Vega is all about changes in Implied Volatility % As a trader, do you try to avoid volatility or do you seek it out trying to use it in your favor? Don't forget to hit that like button!
Great Advice man! Tell me where I going wrong. VIX on selling weekly options: (SPY, IWM, DIA, and QQQ) -> avoiding single stock risk. 12 - 15 (Low IV) : Sell Verticals, covered calls, and sell iron condors. (collect 90% - 100% of premium) 15 - 19 (Medium IV) :Sell Verticals, covered calls, and sell iron condors. (collect 90% - 100% of premium) 20 - 25 (High IV): Sell Verticals, covered calls, and sell iron condors. (collect 90% - 100% of premium) 25 - 30 (High IV): 30 IV and above stay out the market.
I mean, there isn't anything categorically wrong with that strategy. But when IV is low, selling options is not very lucrative. The traditional logic is to buy options (long calls, long verticals etc.) when volatility is low because, those options are comparatively inexpensive. And if volatility increases from the low VIX, then your long options will gain Vega value. I understand avoiding high IV markets, but a lot of money can be made with the right strategies in high volatility markets.
Greetings...Thank you for the tutorial...I have a question for you....What is the Name of the melody at the end of this video with the Bugles ? Thank you in advance.
Thank you for asking! The melody is from Aaron Copland's Fanfare for the Common Man. I myself am a professional French Horn player and recorded myself playing the arrangement of that melody that I use in my videos. I hope you enjoy. And if you are interested in more horn playing, you can explore my other RUclips Channel: www.youtube.com/@lukebaker137
.75x So... instead of comparing IV between strike prices on the same exp. day, to really utelize vega, I should be comparing the vega on strike prices on different exp. days ...? Right?
12% was the difference between the IV% for the options contracts expiring before and after the company reported earnings. (61.13%-49.35%) Theoretically, after a high volatility event like an earnings report, Implied volatility will return to normal levels. Most people refer to this as IV crush.
![Lil Uzi Vert - Chill Bae [Official Music Video]](http://i.ytimg.com/vi/D7F42F_JM3U/mqdefault.jpg)
When I am trying to get a great explanation that is short and sweet, I come here, and I made sure to smash the like button.
That's great to hear! It was my mission from the start of this channel to be able save peoples time with clear explanations in short videos!
Investing for the Common Man begins with "Fanfare for the Common Man." Nice.
Great content again mate! Short & sweet!
Thanks for watching!
Short and sweet! Subbed!
That's the way I like em'!
Good video! Straight to the point!
Awesome! Thank you for watching!
Great info! New subscriber, waiting for more!
Thanks for watching, Putting the finishing touches on a new video today!
Vega is all about changes in Implied Volatility % As a trader, do you try to avoid volatility or do you seek it out trying to use it in your favor?
Don't forget to hit that like button!
Selling volatility is a great way to collect premium when selling options!
@@hornwizard363 That's a great strategy!
So if bullish on a specific underlying and thus selling puts, would one look for high IV and high Vega?
@@chewie1355 Correct, a High Vega will mean more extrinsic option value and higher premiums.
Great Advice man!
Tell me where I going wrong.
VIX on selling weekly options: (SPY, IWM, DIA, and QQQ) -> avoiding single stock risk.
12 - 15 (Low IV) : Sell Verticals, covered calls, and sell iron condors. (collect 90% - 100% of premium)
15 - 19 (Medium IV) :Sell Verticals, covered calls, and sell iron condors. (collect 90% - 100% of premium)
20 - 25 (High IV): Sell Verticals, covered calls, and sell iron condors. (collect 90% - 100% of premium)
25 - 30 (High IV):
30 IV and above stay out the market.
I mean, there isn't anything categorically wrong with that strategy. But when IV is low, selling options is not very lucrative. The traditional logic is to buy options (long calls, long verticals etc.) when volatility is low because, those options are comparatively inexpensive. And if volatility increases from the low VIX, then your long options will gain Vega value. I understand avoiding high IV markets, but a lot of money can be made with the right strategies in high volatility markets.
Sir pls make video on difference between iv vix and Vega btw love ur video ❤️🔥
Great explanation!!✨🙌
Thank you! 😃
Greetings...Thank you for the tutorial...I have a question for you....What is the Name of the melody at the end of this video with the Bugles ? Thank you in advance.
Thank you for asking! The melody is from Aaron Copland's Fanfare for the Common Man. I myself am a professional French Horn player and recorded myself playing the arrangement of that melody that I use in my videos. I hope you enjoy. And if you are interested in more horn playing, you can explore my other RUclips Channel: www.youtube.com/@lukebaker137
awesome video
Awesome video!
Thank you for watching!
Wow good like🙏🙏👉🔔🌷
Great explanation!!TFS Stay connected
Thanks for watching!
Great Video!
Thanks for watching!
Chúc ban thanh công trong cuộc sống
.75x
So... instead of comparing IV between strike prices on the same exp. day, to really utelize vega, I should be comparing the vega on strike prices on different exp. days ...? Right?
where did the 12% number come from?
12% was the difference between the IV% for the options contracts expiring before and after the company reported earnings. (61.13%-49.35%) Theoretically, after a high volatility event like an earnings report, Implied volatility will return to normal levels. Most people refer to this as IV crush.
Very Nice Content You deserve more views, ! Can We Be Friends.
Thank you for watching!
This dude didn’t show me shit just his screen.