In this video, you will learn how to determine if an option is cheap or expensive. I will show you how to use the IV% Rank (Implied Volatility Percentile Rank) to figure out if an option is relatively overpriced or underpriced. I will use a real life example on an AAPL out-of-the-money call so that you can see how it works and do it yourself.
Stock and option trading involves risk may not be suitable for all investors. This post is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither MarketChameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades.