
๐ฒ Follow My Trades on the mobile app, Iris! https://invite.iris.finance/share/inthemoney
(Username @inthemoney)
๐ฒGet access to exclusive videos explaining every trade the day I make them on Patreon! https://bit.ly/30bW9pgโ
๐Get 2 free stocks valued up to $1,400 when you deposit $100 in WeBull: https://act.webull.com/k/CfaJLUrdC3v2/main
๐Sign up for Robinhood and get a free stock, like Visa, Microsoft, or Apple! โ https://robinhood.c3me6x.net/rjg4jโโ
๐Sign up for M1 Finance and automate your investing: https://bit.ly/2OyLsLb
(I use M1 for my long-term investments)
๐I use Atom Finance to keep track of my M1 portfolio: https://bit.ly/3raJQ7sโ
๐Try out TastyWorks, an options-focused brokerage: https://start.tastyworks.com/#/login?referralCode=4EXEMN585H
(Depositing $2,000 helps support my channel)
๐ฐDiscord: https://discord.gg/Ye5Uvftโ
๐ฐSupport the channel directly โ https://bit.ly/30bW9pgโ
All promotions apply to the time the video is posted but may change and become irrelevant in the future. This description will not be updated to reflect this, check the newest video for the most up-to-date promotions.
You should not treat any opinion expressed on this YouTube channel as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Opinions expressed are based upon information considered reliable, but this YouTube channel does not warrant its completeness or accuracy, and it should not be relied upon as such. This YouTube channel is not under any obligation to update or correct any information provided in these videos or their descriptions. Statements and opinions are subject to change without notice.
Past performance is not indicative of future results. This YouTube channel does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this YouTube channel. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested or lose more than their original investment. Investments or strategies mentioned on this YouTube channel may not be suitable for you. This material does not consider your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this YouTube channel. Before acting on information on this YouTube channel, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor.
โโโโโโโโโโโโโโโโโโโโโโโ
Lost money even though you had a call on a stock going up? That very likely was due to IV crush. In this one, we discuss three possible ways manage your options positions to avoid the dreaded IV crush. IV crush, AKA implied volatility crush, is when the value of your options decrease in as implied volatility decreases. Because implied volatility tends to decrease as the underlying increases, itโs possible to lose money due to IV crush even if you guessed the correct direction of the underlying.
The first way is through spreads. Spreads can be long or short volatility depending on which leg is closer to ATM, although their overall vega is significantly less than that of a single, naked option. Of course, your leverage is diminished as well.
The second way is buy hedging SPY calls with VIX puts. While things remain somewhat hedged as the underlying increases in value, if things go down you will lose money from both options.
The last method is buying ITM. ITM options will have significant leverage while having a low vega, reducing your overall risk of IV Crush.