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 answering a question which is – “Does low IV mean that we should be less active selling options?” When we’re talking about IV, we’re talking about implied volatility. This can either be implied volatility rank or implied volatility percentile for an underlying security that you’re looking at. But the question again is – “Should we be less active when selling options during low implied volatility environments?” And I think the answer to this question is yes, we should absolutely be less active overall. Now, that does not mean that we are not active in selling options. We still need to be selling options, but what we should be doing is we should be scaling back our position size and waiting for higher implied volatility markets to be a little bit more aggressive. Again, this doesn't mean that we should not be option-selling and perform option-selling strategies like straddles and strangles, iron butterflies