This Volatility Study Changed How We Trade

This Volatility Study Changed How We Trade | Options Backtest

Рет қаралды 5,934

23 күн бұрын

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Tom Sosnoff and Tony Battista of Tasty Live offer insights on put skew and market measures, identifying key strategies for adjusting short call strikes in different volatility environments. Learn how to optimize your trading strategies for both high and low implied volatility (IV) scenarios.
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Пікірлер: 13

@stevenrod7 19 күн бұрын

This was a great segment, so if Puts skewed higher during Low IV , will the same happen for the inverse where there High IV and Calls being more expensive? I take that taking a short position ATM Puts when Low IV but take a Higher Delta in Calls to equalize the return for calls. I guess this all really depends on what type of strategy you're implementing and what kind of market we are in Bullish or Bear market.

@mauriceamaraggi8098 20 күн бұрын

Is is wise to still sell puts when we are at record highs ?

@user-by8il2mn2p 20 күн бұрын

It seemed to me or I didn’t understand something. Why should you lower your short call closer to the money when volatility is low? If the research shows that the risk of growth in low volatility is high. Would reducing short CALL then be inconsistent with the study?

@AnonymousanonymousA 21 күн бұрын

could you explain a formula where liquidity is high as well as volatility?

@options-trading-tools 21 күн бұрын

Hi I'm not sure to understand the take away. You told in low IV we should have to move the short call closer to the ATM, but in low iv environement 73% of the QQQ move are up, so the call will reach more often! Can you please clarify this point? Thanks.

@isaackk2839 21 күн бұрын

Thanks for putting up this question, Im wondering the same.

@kurtneytodman9360 21 күн бұрын

I believe that they are saying that 73% of moves are up moves, but the up moves are smaller. It is safer to move the call side closer to atm to collect more premium because the slow movement of the stock will give you time to adjust your strike. Also, selling a call closer to atm is a way to get a worthwhile amount of premium. If you try to sell a call at the same distance from atm as you're put, you will get a very small premium for your call.

@options-trading-tools 21 күн бұрын

@@kurtneytodman9360 Thanks, and I understood this point, but: 1/ the move up and down are slightly the same +/- 5% 2/ more premium but reach much more is not a winner plan, according my point of view. I did many backtests on this and call are reached more very often than put.

@pilotstefan1322 19 күн бұрын

If theres one thing ive learnt selljng options its dont sell calls in SPY or QQQ, it loses more than it wins!

@scientificapproach6578 19 күн бұрын

Calls are for hedging only. Unlike puts, calls are a true zero-sum game in indexes. With high put skew and low IV, do not sell calls. Not only will you receive much less of a premium, but you will also be tested much more to the upside.

@thisisbige7970 21 күн бұрын

Is there any book recommendation if I want to learn how to learn how to conduct these research studies? I am a data analyst and super interest in learning how to do market research

@achristianson4059 19 күн бұрын

No never… no book has ever been written on this subject matter ever schleprock