From Nasdaq: 2024-04-30 08:38:10

The Implied Volatility Percentile is a crucial metric for options trading, comparing current implied volatility to past ranges on the same stock. High IV percentile stocks can be found using filters like Total Call Volume 5,000, Market Cap > 40 billion, and IV Percentile > 70%. Stocks like DELL, AMZN, and SBUX show elevated IV Percentiles.

During high IV percentile periods, short volatility trades like iron condors and strangles can be profitable. Comparing a stock’s IV Percentile to the overall market is important, and watching upcoming earnings dates is crucial. An iron condor trade on Amazon with May 24 expiry can offer a $561 premium with a maximum risk of $2,439.

Remember, options trading is risky, and all investment decisions should involve thorough research and consultation with a financial advisor. The author of the article does not hold positions in the mentioned securities. The views expressed are solely for informational purposes.



Read more at Nasdaq: Options Watchlist: 10 Stocks Showing High IV Percentile