Summary: When Implied Volatility (IV) is low, it is difficult to find trading opportunities. This stems from the fact that as premium sellers, we like IV to be high so that we are selling options that are more expensive than when IV is low (sell high, buy low). When overall market volatility is low, it can seem like there isn't a trade to make anywhere. Today, Tom Sonoff and Tony Battista take a look at this problem. The guys take a look at 15 different underlyings over the last 6 years. They find that using just those underlyings, over 87% of the time, at least one had an IV Rank over 50. This study shows that even when IV is low, there are opportunities to place trades and if you are patient, you will find them!
