The Foundation Of Making Money Trading Options | Implied Volatility

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At the end of the day, the only thing that matters in trading is making money. But, where do we even start?

In this episode of the Webinar, Mike Hart and Chris Butler from the tastytrade research team join Ryan Grace in a discussion on Implied Volatility and how it really forms the foundation of what’s necessary to pay attention to in order to make money trading options

The next video in the series discusses the metric we use in order to determine if IV is high or low. If you want to be the first to know when the next Webinar is up, subscribe to our YouTube channel: http://ow.ly/EbyTn

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

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You can watch The Webinar LIVE on most every Tuesday – Thursday @ 3:30pm CT and check out all previous episodes on the tastytrade network everyday at http://ow.ly/Ee7F0

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Comments

Karan Kalra says:

Don't Get confused !! Implied volatility has no relevance when you are Making Spreads, It's all about Number game. How much risk you are taking for getting this reward. That means it all depends upon the Risk & reward ratio. before making any spread option trader know , how much he can loose or how much he can gain !! That's It, Nothing else. but IV have only sense when you want to play Naked selling , then you get good premiums in DEEP OTM. otherwise in spread No relevance of IV.

Nixon Chan says:

you guys are brill! real interesting educational stuff :)

DrZaius says:

Great info for a beginner!

titaniumsandwedge says:

Too confusing and misleads the investor by using math.  First, where is it written that the probability of a stock price move is captured in a symmetrical bell curve?  There are many other distributions that may be more appropriate for the stock.  Also, IV is much higher during earnings week.  This is worse than TA.

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