What Is Volatility Selling?
Volatility selling profits when implied volatility exceeds realized volatility. Sell options premium when IV is high. Profit if actual movement is less than priced in. Yields 25-60% APY.
Sell strangles or straddles during high IV. Collect premium from puts and calls. Profit if price stays in range. Monitor IV percentile and term structure.
Short vol has unlimited theoretical risk. Large moves cause significant losses. Requires sophisticated risk management. Only for experienced traders.
Analyze volatility with Fensory.