It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood—options probabilities, volatility, trading strategies, futures, you name it—so your trading mechanics are built to manage more winners.
Since the exposure of a short premium strategy changes based on IV and the moves of the stock, outlier moves in the stock will have a significant effect on a short premium strategy. How much more significant is the effect of an outlier on short premium compared to a long stock position?
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