Mike Hunt commented on a stock · Jan 5, 2022 10:56

Lesson on Implied Volatility.

$WMT 220107 143.00P$
Stocks like $Futu Holdings Ltd (FUTU.US)$ or $Tesla (TSLA.US)$ or $AMC Entertainment (AMC.US)$ with super high implied volatility (IV) over 100% might see a put option rise 10% in value when the underlying stock moves 1.89%. But when it’s got extremely low IV like less than 20%, stocks like $Kinder Morgan (KMI.US)$ it’s a completely different story.
$Walmart (WMT.US)$ option moved 280% on a less than 2% underlying stock move.

And if a low IV stock like $Caterpillar (CAT.US)$ moves 5% or $JPMorgan (JPM.US)$ moves 3% like today, lookout

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I block accounts with no name, pic, trading history or posts that try to follow me. Sorry hedges

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