From Theory To Practice - April 16, 2021 - Why Selling Premium is Always a Strong Strategy

published 3 weeks ago by tastytrade, Inc.

At tastytrade, we’re always working to put the odds in our favor in as many ways as we possibly can. As a result, we usually like to wait for Implied Volatility Rank (IVR) to spike before we sell premium in a new position. Doing this allows us to better position ourselves for any volatility mean reversion that might occur in the market. Still, it’s important to remember that because implied volatility tends to exceed realized volatility about 85% of the time, selling premium in any market environment can be a sound strategy.More info: 

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