Advanced Institutions Option Trading - Part 6

Volatility Tools in Options
Understanding volatility is central to success in option trading:

🌀 Types of Volatility:
Historical Volatility (HV): Based on past prices

Implied Volatility (IV): Market’s expectation of future movement

📊 Volatility-Based Strategies:
High IV: Sell premium – strategies like Iron Condor, Credit Spreads

Low IV: Buy premium – strategies like Long Straddle, Long Call/Put

Tools like IV Rank and IV Percentile help traders choose the right strategy based on volatility regime.