Ladies and gentlemen, we are in the thick of earnings season once again.
And whenever earnings come around, it has the potential to shake up the market in a big way.
"Sell options ahead of earnings because you'll get a vol crush," traders often say.
And if you're one of the millions of retail traders who don't know what that means, it could cost you.
Don't get it twisted, the "vol" that's getting crushed there is implied volatility, not volume.
Implied volatility is the amount the market thinks a stock price can move.
It can have a massive impact on what we trade, and how we trade it.
Today I'm diving deep into the world of implied volatility — how it works, how to find it and what to do about it. |
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