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 talk about adding low IV trades when rebalancing your portfolio. This is a topic that I’ve been wanting to discuss now, again, for another couple of months because I see people doing this incorrectly or at least having the wrong thought process heading into building out a portfolio for a given expiration month and the misconception that people have is that we should only be trading high implied volatility ticker symbols. And while we’ve debunked this a number of times on both the research and the weekly podcast, even here on the daily podcast over the last four or five years as new research has come out, it still seems to be an issue that people are not willing to add low implied volatility trades to their portfolio. But the reality is that low implied volatility trades still generate a positive expected outcome. Now, granted, they don't make as much money as an option trade would when implied vol