David Settle — Implied volatility is overrated - Options trading framework Smarter Trading
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- Investing
Hello everybody, our guest today is David Settle. David started in the investor education world in 2004 with Investools. He’s coached hundreds of individuals on how to invest and trade the stock, options and forex markets and he currently holds a CMT designation.
In this episode we dive into David’s options trading process and how he uses a top down market posture approach to inform his market bias and trade decisions.
We discuss some contrarian views David holds about selling options that I really enjoyed hearing as a fresh perspective.
We then get into some very practical advice on a lot of topics like: being willing to lose on trades, not getting attached to trades, selling options, volume profile, trading earnings, VIX term structure, and a whole lot more.
Please enjoy this episode with David Settle.
Key learning points
Don't get so attached to trades by keeping size small
Know how much you are going to lose and be willing to lose it
Directional strength using relative strength
How David uses volume profile to spot opportunity
High implied volatility stocks are high IV for a reason
Let the market posture dictate how bullish or bearish you should be
High probability trades equal high risk trades
No one single strategy works all the time
Every single strategy or setup has benefits and drawbacks
How David uses VIX Term structure to gauge market expectations
Learn more & connect with David
Follow David on Twitter, LinkedIn, Facebook, YouTube
Visit Davd's website here
Learn more & connect with Evan & the Trade Risk
Browse the Smarter Trading podcast catalog for this episode's show notes and check out past guests
Watch this episode live on our YouTube channel
Follow @evanmedeiros on Twitter
Follow
Hello everybody, our guest today is David Settle. David started in the investor education world in 2004 with Investools. He’s coached hundreds of individuals on how to invest and trade the stock, options and forex markets and he currently holds a CMT designation.
In this episode we dive into David’s options trading process and how he uses a top down market posture approach to inform his market bias and trade decisions.
We discuss some contrarian views David holds about selling options that I really enjoyed hearing as a fresh perspective.
We then get into some very practical advice on a lot of topics like: being willing to lose on trades, not getting attached to trades, selling options, volume profile, trading earnings, VIX term structure, and a whole lot more.
Please enjoy this episode with David Settle.
Key learning points
Don't get so attached to trades by keeping size small
Know how much you are going to lose and be willing to lose it
Directional strength using relative strength
How David uses volume profile to spot opportunity
High implied volatility stocks are high IV for a reason
Let the market posture dictate how bullish or bearish you should be
High probability trades equal high risk trades
No one single strategy works all the time
Every single strategy or setup has benefits and drawbacks
How David uses VIX Term structure to gauge market expectations
Learn more & connect with David
Follow David on Twitter, LinkedIn, Facebook, YouTube
Visit Davd's website here
Learn more & connect with Evan & the Trade Risk
Browse the Smarter Trading podcast catalog for this episode's show notes and check out past guests
Watch this episode live on our YouTube channel
Follow @evanmedeiros on Twitter
Follow
53 min