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

Hey everyone, Kirk here again. On today’s daily call, we’re going to answer the question, “Should your trading strategy change with implied volatility?” The quick answer to this is no, your overall strategy should not change, meaning the game plan should generally be the same. Sell options, collect income, keep your position size small, make lots of trades. But the tactics in which you go about it should change. It should adjust and move based upon where you are on the field. To go back to any general sports analogy, your strategy might change if you’re down by 10 points or up by 20 points. The game plan is still the same. You want to win the game, but the tactics might change if you are on the two yard line, about the store or if you’re on the 50 yard line at the middle of the field. The tactics might change. Strategy is still the same. You still want to score. You still want to win. That’s the thought process that I have when it comes to this and how I think about it. To use some more concrete examples of t