The entire game of options trading depends on when to buy volatility and when to sell volatility. As we have already been told that we should usually try to sell when IV is higher and buy when IV is lower. The simple reason is premium is lower when implied volatility is low and vice versa. The million-dollar question is how to know IV is low and high. To solve this problem, ...
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Options data can provide many useful insights about the market. It is even possible to gauze market direction with predictable accuracy. How is it possible? Here is how you can estimate market direction with options data. How can we predict market direction with Open Interest? However, before that, it is important to understand the basic concept. Understanding Open Interest (OI) Open Interest (OI) tells you how many options contracts are outstanding in ...
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