How to Invest in Low Volatility Markets - Trading with the VIX under 15



In a low volatility environment the distribution curve is narrow and tall. This makes your 1 standard deviation range much tighter than in a high IV environment. So when we sell 1 SD OTM premium, we take on more risk for less return. This is part one of this great series! Check out our archives for the rest: https://www.tastytrade.com/tt/shows/MT

Comments

  1. 11 is the New 15.
  2. confused...when should I buy? Low IV or High IV?
  3. I think you speak a very good English - the guy with long hair.
  4. the greeks measure rate of change of underlying, option price, etc. But do we have a greek symbol to measure the rate of change of implied volatility? One "monkey" unit..hit it, monkey! One monkey is defined as a 1% change in IV rank in either direction :-)
  5. Same time of the year is here again....
  6. @ 11:36 - "I am 100% at fault... this study just invalidated something we said just 2 days ago..." Recognizing reality and boldly following it despite your pre-determinations is WHY you guys are among of the best traders in the world Tom & Tony. This video provided excellent context.
  7. Thanks Tom!!


Additional Information:

Visibility: 18432

Duration: 14m 51s

Rating: 93