As premium selling tastytraders, we position our portfolios to take advantage of changing volatility. And the unique aspect about market volatility is that it tends to revert back to its historical mean over time. In other words, when volatility is high, it tends to contract, and when volatility is low, it tends to expand. Interestingly though, volatility contracts far more often than it expands, so premium selling just becomes even more effective when IVR is high.
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