Paid Daily · Resources · Ask Plutus
Mike Butler Says IV Rank Can Lie to You, Here's What to Check
NowPress play to follow along0:00 / 17:24
Chapters9 segments · tap to seek
ticker lesson
Breakdown
0:00lesson
Implied volatility metrics: IV rank and IV percentile
- IV rank measures historical volatility over 52 weeks
- IV rank 100 = new high in volatility
- IV rank 0 = new low in volatility
- IV percentile shows % of days with lower volatility
- IV percentile smooths volatility spikes
2:03lesson
IV rank and IV percentile on Tasty Trade platform
- IV rank shows volatility relative to 52-week range
- IV percentile adds context to volatility levels
- Add IV percentile to watchlist for analysis
- IVX is actual implied volatility reading
- IV rank and percentile help identify extremes
4:12lesson
IV rank and percentile in practice
- IV rank resets with volatility spikes
- IV percentile smooths volatility extremes
- High IV means expensive options
- IV rank helps identify volatility extremes
- IV percentile shows volatility relative to history
6:18lesson
Comparing implied volatility across products
- Higher IV = more expensive options
- FE has 70% IV vs PayPal's 35%
- Straddle premiums reflect IV differences
- Rocket Lab has 68% IV vs XEL's 29%
- IV rank helps identify high IV products
8:29lesson
Return on capital and implied volatility
- Sell premium with 20% return on capital
- Rocket Lab gives 40% return vs 10%
- IV rank helps identify efficient products
- IV percentile shows volatility extremes
- IVX is key for premium selling
10:26lesson
IV rank and percentile in real-world examples
- Rocket Lab has 70% IV and IV rank 5.8
- Excel Energy has 28% IV and IV rank 80
- IV rank doesn't always reflect actual volatility
- IV percentile helps identify true extremes
- IVX is the key metric for premium selling
12:31lesson
IV rank and percentile in different markets
- TLT has 13% IV and IV rank 43
- Rocket Lab has 70% IV and IV rank 5.8
- High IV environments are better for premium selling
- Low IV environments are better for buying options
- IV rank and percentile help identify opportunities
14:32lesson
Using IV metrics for strategy decisions
- IV rank and percentile help identify products
- IVX is the key metric for premium selling
- Avoid products with 200% IV due to high risk
- Focus on 50-100% IV range for strategies
- Use IV metrics to define risk and return
16:27lesson
Final thoughts on IV metrics
- IV rank and percentile are contextual tools
- Always check actual IVX for premium selling
- Avoid low IV environments for short strategies
- Use IV metrics to define risk and return
- Focus on 50-100% IV range for strategies
Informational only — this is tastylive’s content, decoded by Plutus. Not Paid Daily’s advice or a recommendation. The outline, timestamps, and claims are extracted from what the creator said; verify before acting.