LD Lossdog Research
topic

implied volatility

8 matching records.

Q&A

How much BP reserve should I maintain for market downturns and how much powder should I keep dry to take advantage of high IV to place other trades?

The speaker suggests maintaining a portion of capital as dry powder, typically around 25% to 50%, depending on the trader's risk tolerance and market conditions. The exact allocation may vary based on implied volatility (IVR) and the trader's account size. The speaker also mentions that smaller accounts may allocate up to 70% of their capital to dry powder, while larger accounts may use a smaller percentage.

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Actionable takeawayMaintain a portion of capital as dry powder, typically 25% to 50%, to take advantage of high implied volatility and market downturns.
implied volatilityOptionsrisk management
high confidenceVerify in video at 49:03 ↗
Q&A

Does selling VIX futures reduce implied volatility?

Selling VIX futures reduces implied volatility as per its definition. However, if VIX futures continue to rise despite selling, it indicates that the market's demand for futures is higher than the supply, which may not align with the definition of volatility reduction.

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Actionable takeawaySelling VIX futures is a mechanism to reduce implied volatility, but market dynamics can affect the outcome.
implied volatility
high confidenceVerify in video at 27:03 ↗
Q&A

What are your thoughts on SKHY?

SKHY is tradable, and the speaker has traded it a couple of times. The speaker mentions that it's very tradable and that the market there was tradable. The speaker also mentions that the implied volatility is high, but it's not a concern as long as the trader is comfortable with the risk.

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Actionable takeawaySKHY is considered tradable with high implied volatility, but the trader should be comfortable with the risk.
SKHYimplied volatilityMarket OutlookRisk ManagementTrading Strategy
high confidenceVerify in video at 38:24 ↗
Q&A

I have sold uh portfolio covered uh puts on uh and I'm I'm trading on the um the thinker slim platform. One of the things I've noticed watching you lately is you keep uh bringing up this IVR and I I I don't believe that it's available on this on this particular platform.

IVR is available on the platform but is mislabeled as IBP (implied volatility percentile). It can be found in the drop-down menu or by contacting support. The speaker uses IVR for consistency and context around implied volatility.

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Actionable takeawayIVR is available on the platform but mislabeled. It can be found in the drop-down menu or by contacting support.
implied volatilityIVRplatform features
high confidenceVerify in video at 15:40 ↗
Q&A

When will SpaceX implied volatility rank or any new stock be accurate? Is it after a certain period of time or some kind of movement?

It takes time. IVR really works after one year, but after six months, you can kind of roll with it because it's probably going to be pretty fair. But a year, everything we do with existing stocks is goes one back one year in time. Now, we you could go back longer, you can go back two years or three years, but I don't think it's as effective. I think one year, we did a lot of research on this, one year is the most effective statistic um when it comes to IVR. If you're using like things like beta or stuff like that, you can use three months or six months, but if you're using IVR, I think one year is probably the most accurate. It's subjective, but it's probably the most accurate. SpaceX, I would say after 6 months, you're probably good to go.

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Actionable takeawayIVR is most effective after one year, but can be used with some accuracy after six months. SpaceX's IV rank is currently at six, indicating lower volatility.
implied volatility
high confidenceVerify in video at 1:18:13 ↗
Q&A

What is the current implied volatility of SpaceX?

The implied volatility of SpaceX is currently at 100%, but the speaker believes it will settle into around 60.

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Actionable takeawayThe implied volatility of SpaceX is expected to decrease from 100% to around 60.
implied volatility
high confidenceVerify in video at 11:23 ↗
Q&A

What are the best tools for analyzing the technical strengths of a stock versus what the institutional or retail sentiment is on that stock?

The best tool is implied volatility (IVR), which measures volatility relative to the stock itself. High IV indicates higher volatility and suggests strategies like selling premium. Charts are also used to assess if a stock is at the low or high end of its range.

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Actionable takeawayUse implied volatility (IVR) to determine volatility relative to the stock and use charts to assess price levels.
implied volatilityTechnical Analysis
high confidenceVerify in video at 21:15 ↗
Q&A

Does higher implied volatility always mean lower basis?

Higher implied volatility does not always mean lower basis. The speaker explains that when volatility is high, it often indicates a lower stock price, which can result in a lower basis for a purchase. However, in certain markets like commodities, higher volatility can occur when prices are rising, which is the opposite of the stock market pattern. The speaker also notes that the basis is influenced by the timing of the purchase, with buying at a higher volatility period resulting in a higher basis.

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Actionable takeawayHigher implied volatility can indicate a lower basis in stocks, but this relationship may not hold in commodities where volatility and price movements can be inversely related.
implied volatilityvolatility
medium confidenceVerify in video at 44:22 ↗