This is the Best Time to Trade Options￼
Dear Profit Takeover reader,
I pay attention to volatility as an indicator of option pricing.
When a stock’s Historical Volatility (HV) is higher than the Implied Volatility (IV) that means it’s a great time to buy options.
Just like stocks, you want to buy options when IV is low and sell when it is high.
Implied Volatility is the estimation of a stock’s price in real-time as it is trading. So if IV is higher, that means options will be more expensive and if IV is lower, options will be cheaper.
Check out this chart in SPY:
The red line shows IV, currently at around 20.76 and the blue line shows HV is around 26.38, so historically options were a bit more expensive than they are now and options are cheaper than they have been over the past 20 days.
To get good pricing, you can take advantage of cheap volatility.
Here are three ways I am planning to profit by taking advantage of cheap volatility…
I’ll be watching my indicators for the perfect time to buy a long-dated bearish ratio spread in UVXY to expire a year from now – paying next to nothing and about a year later having about 100% return…
I am also currently looking at puts in VIX in May, June, and July for cheap.
And right now, each weekday, I am taking advantage of volatility to help traders make money on SPX and XSP.
The more volatile the market and the more the market moves before landing in the cash zone, the more potential profit traders can make.
Here’s what some traders said yesterday:
Call 877-848-3418 right now to get your spot to learn to trade SPX and XSP with us today at 2:00 pm ET.
I’ll see you then,
November 29 2022
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