Implied Volatility Explained: How to Use IV% to Trade Options Smarter

Pandrea Money October 19, 2025
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Pandrea Money

@pandreamoney

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30 something year old entrepreneur who started several businesses while in his 20s, decided to turn to smart investing in his 30s. Learn about growing your wealth, creating passive income and much more! Starting a NEW business - FREE for everyone: https://lazymoneyclub.beehiiv.com/subscribe

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How To Trade Options Using Implied Volatility. ►My free newsletter: https://www.lazymoneyclub.com/ Implied volatility (IV) is one of the most powerful — and most misunderstood — concepts in options trading. In this video, we’ll break down exactly what IV is, how it works, and how you can use it to make smarter, more profitable trades. 📘 Chapters 00:00 - Intro 00:57 - What Is Volatility in Stocks? 03:36 - Implied Volatility Explained 07:40 - IV% Example 09:27 - What Creates Implied Volatility 10:52 - How Implied Volatility Is Overestimated 14:25 - How To Calculate Monthly IV% 19:17 - Standard Deviation - Probability Ranges 25:11 - How IV Affects Your Option Prices 27:11 - IV Rank Explained 34:10 - Reverting To The Mean Concept (Important) 38:02 - What Affects Implied Volatility 41:18 - Putting It All Together - The Full Strategy You’ll learn: ✅ What volatility really means in the stock market ✅ The difference between historical and implied volatility ✅ How IV is calculated (and what makes it rise or fall) ✅ How IV impacts your option premiums ✅ What IV Rank tells you about whether options are cheap or expensive ✅ How to convert annual IV into monthly, weekly, or daily expected moves ✅ A complete step-by-step plan to use IV and IV Rank to choose the right strategy By the end, you’ll understand how to read IV like a pro and know when to buy options, when to sell options, and how to use volatility to your advantage instead of letting it work against you. #options #impliedvolatility #optionstrading #IVrank #stockmarket #investing #tradingstrategies #volatility #financialeducation #optionsforbeginners

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