As option sellers, we will always look for stocks that have a high Implied Volatility (IV) and a high IV Rank. This allows us to see when options are expensive and thus provides us with ideal trading opportunities.
Today, Tom Sosnoff and Tony Battista discuss how we use IV and IV Rank when trading options. The guys first explain why IV and IV Rank are important. They also talk about how just because two underlyings have the same IV Rank, it doesn't mean the premium will be the same for a specific trade. For this reason it is important to be aware of the IV as well as the IV Rank!