The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about why you shouldn’t avoid trading options in low volatility markets. It’s a big misconception that’s out there, something that we have dispelled previously in our profit matrix research. There’s a number of other companies and hedge funds out there that have also put out research on this that dispel the same common myth and this myth is that in low implied volatility markets, we should avoid options trading, in particular, option selling that now, in low implied volatility markets, the odds and the edge switch to option buyers, but it’s just not the case. The reality is that in all implied volatility levels, the edge is still going to the option seller or the premium seller for the potential risk in the trade long-term. Does this mean that in low implied volatility markets, you could lose money as an option seller? Yup, for sure. You could definitely lose money in low implied volati