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 answer the question, “What's the point of trading high implied volatility when the stock is making even larger moves?” This question came from another one of our members and the underlying theme here is really just this idea of – Why do we trade options when high implied volatility is present in the market? Doesn't high implied volatility then reflect that the stock is going to make this large move or this massive move? Why are we stepping in front of a freight train (for lack of a better term) and trying to trade options and sell premium hoping that the stock is going to stay contained when everyone is betting on these big moves? And the reason that we do that is because what we’ve consistently seen not only through our research, but you can also check other sources and other data providers, but when we see high implied volatility situations, situations where a stock is expected to make a very, v