Implied Volatility IV vs IV Percentile

http://optionalpha.com - Understanding (and mastering) the difference between a stock's actual implied volatility and that IV's percentile or rank going back historically is one of the biggest keys to your success. This is because our whole concept of trading options and selecting strategies hinges on this concept of volatility and pricing. Are options relatively expensive or relatively cheap? How do we know? How can we truly compare between different stocks? In this in-depth tutorial lesson I'll go into great detail to make sure you know exactly why simply looking at a stock's IV is not enough. And how you can figure out how cheap/expensive a stocks options are relative to the past. Buckle up because this one is intense. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. Superb content! This was the best & most succinct explanation I've heard on this very important topic. One question - how can I gain access to the IVRank Chart indicator?. It's not listed in TOS 'studies'. Thanks.
2. Kirk, i can't seem to find volatility percentile content regarding to forex. Is it different, or not an issue because of the nature of the market ? TOS plaftorm doesn't show IVRANK on currency pairs.  I am in Europe, and considering options on FX.
    
3. So so important!  Good explanation!!!
4. Understanding (and mastering) the difference between a stock's actual implied volatility and that IV's percentile or rank going back historically is one of the biggest keys to your success.
   
   Watch the free lesson here: http://buff.ly/1BHPPov
   
   This is because our whole concept of trading options and selecting strategies hinges on this concept of volatility and pricing. Are options relatively expensive or relatively cheap? How do we know? How can we truly compare between different stocks?
   
   In this in-depth tutorial lesson I'll go into great detail to make sure you know exactly why simply looking at a stock's IV is not enough. And how you can figure out how cheap/expensive a stocks options are relative to the past. Buckle up because this one is intense.
5. Great video! This question has been on my mind!