What is the IV level? Practical experience sharing in options trading.

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What is the function of IV (implied volatility)? How to use IV to formulate options trading strategies? (00:45 - 03:26)

Implied volatility (IV) is very important in options trading.

IV reflects the market's expectations for future stock price volatility, which is a key factor in determining the high and low prices of options. Traders often use IV to develop strategies, such as selling options when IV is high and buying options when IV is low, because changes in IV can affect options prices. In addition, current IV can be compared with historical volatility (HV) to assess its relative level.

How to analyze options implied volatility? (03:27 - 05:23)

Through the options analysis function of the Futubull app - Options Analysis - Volatility Analysis, we can quickly view implied volatility IV, historical volatility HV, and quickly determine whether the current IV is high or low, and also view historical data changes.

For specific usage tutorials, please watch the video.

Simple examples of options trading strategies (05:24 - 07:18)

After analyzing and judging with the help of charts, you can preliminarily determine your subsequent investment strategy, in conjunction with strategies such as Long Straddle or Short Put options strategies to achieve your goals.