LSJ Legend  Posts: 515 Joined: 8/17/2006 Location: Citrus Springs, FL  User Profile | I scan for option trades with this: I also plot "ImpVol" and "HistVol" in the same panel to see the relationship. In the same chart I also use IndIVPercentile(250) to get a long look at IV. I am trading almost all option trades now just selling premium and waiting for decay or expiration OTM. There are statistical studies that show this process to have a high probability of profit. I like trading like this now that I am an old geezer because I can take a couple days off and rely on defined risk or stops set on the underlying and the trades are usually 10 days+. I really don't like buying options since it is a wasting asset. I did buy a few calls on real beat up stocks when the calls were cheap but that is the only way I buy premium. I used to use another option platform but I am been working with Option Trader 6 and modifying some of the trade plans to get what I want. But yeh, if you are buying calls you would want to buy calls with low IV. I have seen trades in call buying that even though the buyer got the direction right they lost money on the trade becsue IV increased. (You know all about headwinds and tailwinds <:) [Edited by LSJ on 2/8/2021 9:59 AM]  Attached file : IV.jpg (22KB - 527 downloads) |
