Understanding the volatility factor while trading options is vital in becoming a successful options investor. Option prices will increase or decrease depending on what the implied volatility (IV) does and regardless of whether the stock price goes up or down. When the IV is high it’s dangerous to buy an option. Try to buy an option while the IV is low. Think of a river that you normally drive by. Most of the time that river is about the same size right? However there are times when heavy rain occurs […]