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From Theory to PracticeBuilding a Big Credit Bank | Aug 20, 2021
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    From Theory to PracticeBuilding a Big Credit BankAug 20, 2021
    As premium sellers, we’re always in a better position the more credit we can collect, ceteris paribus. Two of the primary ways that we can increase this credit collected is by focusing on stocks with higher IVRs and higher IVs. When both of these metrics are on the high end, we are positioned to take advantage of the richer option premium that will follow. Naturally, however, there is a downside to stocks with higher IVs. As we see with our PINS position, the stocks that are higher IV are higher IV because they move more wildly than stocks with lower IV.

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