The Importance of High Implied Volatility in Small Trading Accounts

Find out what the effect high Implied Volatility has on option spreads! See more tastytrade videos: http://bit.ly/1xTayk2 When selling premium, we always want to take advantage of high Implied Volatility (IV) and high IV Rank. This allows us to get further away from the at the money strikes for the same amount of credit or collect a larger amount of credit if we want to use the same strikes. This is most clear when we are trading naked options such as a Strangle but can also be seen when trading spreads. Since smaller accounts are unable to trade naked options, Tom Sosnoff and Tony Battista highlight the importance of a high IV Rank using spreads. Today, the guys show you the amount of credit that you can receive when an underlying is at the same price, with approximately the same days until expiration and the only difference being IV and IV Rank. They clearly show why waiting for high IV is better whether you are trading naked options or using spreads to define your risk! ======== 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 Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/

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