Understanding options and where to trade them.

[sebastionay]

Quote from Chelsea_FC:

IV= Implied Volatility

So what he is saying is, the market is pricing a big vol, meaning buying options is going to be very expensive. In basic terms, even if you were to get a pretty big jump in underlying, you might have paid so much for the premium (because of large IV) that it isn't even worth it.

That's made it crystal clear thanks, I'm looking at trademonster now their education video's seem easy enough to understand.