How We Use IV Rank to Determine Our Strategy | Trading Foundations

A stock's implied volatility rank helps us determine whether the current prices of its options are high or low compared to where they've traded over the last year. On this episode of the Webinar we discuss another very important trading metric, IV Rank. Once we understand the current IV Rank of a stock, we will choose the appropriate strategy based on our assumption. Understanding the IV Rank let's us know if the stock's options are expensive (High IV Rank) or cheap (Low IV Rank) and we will then be better informed to make a decision to sell or buy options based on this information. We'll be following up with plenty of videos on the basics of options soon, but in the meantime, checkout the other Webinar videos at http://ow.ly/LLCuH You can also tweet at Ryan & Mike if you have any questions you'd like answered and we might even answer them in our videos. Ryan on Twitter: @doughTraderRyan Mike on Twitter: @mikehart79 ======== The Webinar with Ryan Grace ======== If you're just getting started, The Webinar is a must watch segment on tastytrade. We cover all of the important topics and concepts you need to know to improve your probability of profit, become a better trader, and hopefully make some sweet sweet cheddar (money). We also tell jokes once in a while too. You can watch The Webinar LIVE on most every Monday - Friday @ 12:30pm CT and check out all previous episodes on the tastytrade network everyday at http://ow.ly/Ee7F0 ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Watch tastytrade LIVE daily Monday-Friday 7am-3:15pmCT: http://ow.ly/EbzUU Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade! Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tasty... Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Once I've figured out the IV Rank is it supposed to match the Rank already showing on the chart, or is it it's own round about number to give me an idea as to what direction the rank is likely to go in being higher, or lower than 50%?