The Volatility Playbook: Trade IV Like a Pro (Not a Tourist)
Description
Most options traders think they’re trading “up or down.” They’re not. They’re trading movement—how fast, how far, and how expensive that movement is. In this episode, I break down volatility the way professionals actually use it: Historical Volatility (HV) vs Implied Volatility (IV), why IV is the price tag on uncertainty, and how Vega turns volatility into profit—or turns a “right” trade into a loss.
We’ll hit the killer concept most beginners learn the hard way: vol crush—when you nail direction and still lose because IV collapses after an event (earnings is the classic trap). Then I lay out a clean, repeatable framework: buy options when IV is cheap, sell options when IV is expensive, and stop using the VIX like it’s a magic compass—use IV Rank / IV percentile in the actual underlying you’re trading.
If you want a real options edge, learn to trade the thing options are made of: volatility.
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