Trading Options: Selling Opportunities in Low Volatility Markets | Market Measures

How much time do underlyings spend with high volatility, and what are the best opportunities to trade this environment? See more videos from the Market Measures Series: http://ow.ly/Izhl3 In times of extended rallies, our go-trades of selling volatility are often unattainable because of low IV. That said, how often can we use our favorite selling strategies? Looking at the number of times our favorite (read:liquid) underlyings were in high IV from 2008 to present, our team discovered that even in the overall low IV environment, there was still an opportunity to trade one of the underlyings 41% of the time. From that, the Research team wanted to determine how fast volatility contracted. Analyzing how long it normally takes for underlyings to move from under an IV Rank of 25 to over an IV Rank of 50 and how long it take for underlyings to move from over an IV Rank of 50 to under an IV Rank of 25, they find out that on average IV will contract 43% faster than it expands! It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood—options probabilities, volatility, trading strategies, futures, you name it—so your trading mechanics are built to manage more winners. You can watch a new Market Measures episode live and check out all previous episodes everyday at http://ow.ly/EoyGW! ======== 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://ow.ly/EbyTn 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 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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