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Market Measures - December 4, 2025 - The Premium Question: How Much, When and Why?

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Manage episode 522630226 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
he segment examines how much premium options sellers collect in varying volatility environments. Data from 2020-present shows selling premium during high implied volatility periods yields greater profit potential while maintaining similar probability of success rates. Analysis of SPY 16-delta strangles and 30-delta puts reveals premium collection averages 1-1.5% of stock price. 2025 has shown premium levels above long-term averages, making it a favorable environment for premium sellers compared to 2024's lower volatility. The study breaks down IV rank occurrence: 70% of the time markets trade in 0-30 IV rank, while 90+ IV rank happens only about 1% of the time. Data indicates 30-delta naked puts collected 25-40% more premium than strangles in SPY due to put skew.
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1681 episodes

Artwork
iconShare
 
Manage episode 522630226 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
he segment examines how much premium options sellers collect in varying volatility environments. Data from 2020-present shows selling premium during high implied volatility periods yields greater profit potential while maintaining similar probability of success rates. Analysis of SPY 16-delta strangles and 30-delta puts reveals premium collection averages 1-1.5% of stock price. 2025 has shown premium levels above long-term averages, making it a favorable environment for premium sellers compared to 2024's lower volatility. The study breaks down IV rank occurrence: 70% of the time markets trade in 0-30 IV rank, while 90+ IV rank happens only about 1% of the time. Data indicates 30-delta naked puts collected 25-40% more premium than strangles in SPY due to put skew.
  continue reading

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