IVP Cheatsheet

[Dushyant Thakker-1733574956821]

I get asked a lot that when is it a good time to sell or buy index options. Here is a little handy cheat sheet which over the years many traders have recommended and what i have observed from my trades. Most imp column is "What Not To Do" (AP Sir style ) . I look at IV Percentiles (IVP) .

IV Percentile (IVP) is a metric that shows the percentage of trading days in the past year when a stock's implied volatility (IV) closed below its current level. It helps you judge if option premiums are cheap or expensive compared to their past behavior.

You can observe IVP values in Opstra --> Options --> Options Dashboard.
Please be aware this DOES NOT APPLY for intraday and DTE1 and DTE0 trades because IV has insignificant impact on expiring options.

Please note this is only a guidance and observation and not a recommendation.
Let me know your thoughts and questions below.