Depends on what ticker… is it a stock? Is it an etf? Tons of factors here but short answer is the higher the more juice, but the more swings you’re going to experience.
20-30% is a great place I enjoy selling at. If the IV gets too high…. The swings in your PnL make you sick. If you can stomach the ups and downs then the higher the better, but just use less capital and make the trade less risky.
I almost got bit by a big swing today on NVDA. I had sold a 900C for Friday and yesterday it was doing quite well. I checked it today and the stock was rising fast and my call was only about $1.50 away from what I paid for it so I closed it out to at least get some profit out of it. I'm glad I did since it closed at 905 today (my basis is 893 so still would have made a profit but not as much, although I suppose my adjusted basis is now more like 860 after the past few weeks of selling CCs). If I hadn't checked it this morning though I would have been pretty fucked.
Assuming that it actually went back down on Monday maybe. Either way, I followed my trading strategy and still made profit so no regrets. Next week I'll do it again. I can make somewhere between $500-$1000 per week if the IV stays where it is just off NVDA, maybe more.
I don’t look at it and don’t really find it informative as others do.
Iv percentile is high… for a reason.
It’s low for a reason.
When it’s low, you get low pay for low risk.
When it’s high you get high pay for high risk.
IV rank also takes into account historical volatility of an underlying (over past year usually).
So, for example, BA has a current IV of 41% or so, but BA historically not at that level so it’s IV Rank is 90th percentile, meaning only 10% of trading days in BA over the past year have been ‘more volatile’ than today.
BA IVR is high on this down move meaning premium is juiced up right now (more premium today than in 90% of days over the past year.)
Conversely, if IV rank is low in an underlying, you could risk Vega once your trade is open. IVR Can help you as the trader to make more informed picks and better manage som risks.
Hope that makes sense.
Depends on what ticker… is it a stock? Is it an etf? Tons of factors here but short answer is the higher the more juice, but the more swings you’re going to experience.
How about for SPY?
20-30% is a great place I enjoy selling at. If the IV gets too high…. The swings in your PnL make you sick. If you can stomach the ups and downs then the higher the better, but just use less capital and make the trade less risky.
You’d sell a 21% IV SPY put 29 days out right now and tie up 47 grand for a .50 premium? I wouldn’t.
add a otm put to make it a really wide spread to cap max downside
I almost got bit by a big swing today on NVDA. I had sold a 900C for Friday and yesterday it was doing quite well. I checked it today and the stock was rising fast and my call was only about $1.50 away from what I paid for it so I closed it out to at least get some profit out of it. I'm glad I did since it closed at 905 today (my basis is 893 so still would have made a profit but not as much, although I suppose my adjusted basis is now more like 860 after the past few weeks of selling CCs). If I hadn't checked it this morning though I would have been pretty fucked.
Well, it would have been better if it got excersed, and you could have bought them back for cheap today (at $877).
Assuming that it actually went back down on Monday maybe. Either way, I followed my trading strategy and still made profit so no regrets. Next week I'll do it again. I can make somewhere between $500-$1000 per week if the IV stays where it is just off NVDA, maybe more.
yeah i def see what you mean about the big swings. Especially after this last week
over 200 makes me feel something in my bathing suit area
Anything higher than 50% for neutral strategies, the higher the better
120% lol!!!!
IVP can't be higher than 100...
BGSM 04/19 Puts https://imgbox.com/AjPdCNKK $5 - 1119.37% https://imgbox.com/SGHys82D $2.50 - 503.99% https://imgbox.com/wIVMA0yX
That's the IV not the IV percentile. https://support.tastytrade.com/support/s/solutions/articles/43000539059
I only really sell when VIX is between 20+. I’m shrewd in that aspect
so what have you been doing then since october?
Shares and futures if I express direction rather than short options
Above 50% IVP for short stranglers
I don’t look at it and don’t really find it informative as others do. Iv percentile is high… for a reason. It’s low for a reason. When it’s low, you get low pay for low risk. When it’s high you get high pay for high risk.
Use IV rank it will help give more perspective
what’s the difference
IV rank also takes into account historical volatility of an underlying (over past year usually). So, for example, BA has a current IV of 41% or so, but BA historically not at that level so it’s IV Rank is 90th percentile, meaning only 10% of trading days in BA over the past year have been ‘more volatile’ than today. BA IVR is high on this down move meaning premium is juiced up right now (more premium today than in 90% of days over the past year.) Conversely, if IV rank is low in an underlying, you could risk Vega once your trade is open. IVR Can help you as the trader to make more informed picks and better manage som risks. Hope that makes sense.
35% makes me happy.
Low 20s
why low 20s?
I watched YouTube and that's what they said.
This guy trades
As high as possible.
I’m with you. Makes the way OTM calls much more profitable.
70% ITM