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Mike Butler Shows the Volatility Levels Where He Sells vs Buys Premium

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Chapters6 segments · tap to seek
ticker lesson

Breakdown

0:00lesson

Implied volatility overview

  • Implied volatility discussed
  • Focus on reading implied volatility
  • Highlight selling and buying premium levels
2:00lesson

Implied volatility ranges

  • IV rank metric explained
  • Spy has low IV range
  • Tesla has high IV range
4:03lesson

Implied volatility crushes

  • Large IV ranges for tech stocks
  • AMD example with 40-point range
  • Strategies for volatility crushes
6:04lesson

Earnings and implied volatility

  • Caution with strangles near earnings
  • Earnings date September 24th
  • Risk of directional moves
7:59lesson

Buying vs. selling premium

  • Buy premium in low IV products
  • TLT example with 13% IV
  • Lower IV means less market movement needed
9:53lesson

Risk management with premium

  • Ensure risk is in check when selling premium
  • Tech stocks show large swings
  • Need to withstand variance in products

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