Premium sellers are subject to numerous sources of risk, including potential losses from changes in IV of the underlying. This is especially of interest now, as IV is still elevated from this recent selloff and prone to large moves. Today we discuss how to quantify this risk from volatility-sensitivity and how problematic it may be to premium sellers in high IV environments.

Premium sellers are subject to numerous sources of risk, including potential losses from changes in IV of the underlying. This is especially of interest now, as IV is still elevated from this recent selloff and prone to large moves. Today we discuss how to quantify this risk from volatility-sensitivity and how problematic it may be to premium sellers in high IV environments.

Volatility Sensitivity

It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood—options probabilities, volatility, trading strategies, futures, you name it—so your trading mechanics are built to manage more winners.

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Volatility Sensitivity

Volatility Sensitivity