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Ryan & Beef

Monday – Friday | 11:30 – 11:45a CT

How Selling Volatility Actually Works

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.
Our edge is selling overstated option premium


The fundamental facet of our approach to trading options lies in looking for opportunities where we believe option premium is overstated and to subsequently sell options at these prices. In effect, we are selling what we consider to be "high implied volatility." We believe that at these points, option premium is overstated and there is an edge in selling these relatively expensive options, i.e. selling high implied volatility.

On today's show, Ryan and Beef explain the basics of implied volatility and its relationship to option prices. The guys present the reasons why they feel there's the potential to profit by selling options when implied volatility is elevated and how we can measure whether or not these conditions exist in the market.

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