Ryan & Beef

Monday – Friday | 11:30 – 11:45a CT

Why We Should Focus On Realized Volatility

Ryan & Beef

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

While realized volatility is backward-looking relative to implied volatility, market supply and demand dynamics and expectations of the future are typically shaped by what has happened in the past.

Therefore, we feel it's important to understand how volatile a stock price has typically been in the past, prior to making a trade on what its volatility will be in the future.

On today's show, Frank explains what realized volatility is and how focusing on this value can present us with potential opportunities for selling option premium. Understanding when the spread between realized and implied volatility is at its widest can help us enter short premium trades that have a higher probability of ultimately being profitable.

Follow

Ryan & Beef Show on Twitter

Ryan on Twitter

Beef on Twitter

Frank on Twitter

Ryan & Beef More installments

See All »

Latest tastytrade Videos As of February 23

Most Shared From the last 30 days