Kill me but How do I short Vol?

[bearinsight]

I know. It's basic but the people I would ask would immediately know I was faking to get into their golf club. So.....

They keep saying "short the vol". I googled it. I don't understand it. It's volatility...like in gamma? delta?

Does it mean short the vix? Specifically what stock...UVXY?

I'm coming to you from a background in retail - not institutional trading. It's obviously got to do with options but I'm hoping for some help.


Thank you

KM

Perhaps you can listen to this podcast.
This dude trades uvxy and volq

https://www.nasdaq.com/articles/opt...ef-investment-officer-of-hercules-investments

 

[klattermusen]

How do you assess the volatilty on a single stock; say TSLA - where would you look to see that the vol on TSLA options were high or low - specifically the options I mean..thank you

 

[ValeryN]

How do you assess the volatilty on a single stock; say TSLA - where would you look to see that the vol on TSLA options were high or low - specifically the options I mean..thank you

You are looking for IV (Implied Volatility). Most brokers have it and you can literally put it on a chart as an extra panel. Try to look at historical volatility and implied volatility together.

IV will spike when market is in uncertainty or fear. For individual stocks - often driven by closeness to earnings, as big moves are anticipated.

PS. IV is one of the very few things that matters. Unlike myriad of technical indicators people keep chasing.

Val

 

[Girija]

How do you assess the volatilty on a single stock; say TSLA - where would you look to see that the vol on TSLA options were high or low - specifically the options I mean..thank you

Tsla iv is 100.0 its one year moving avg is 82