Black Swans: How to Use Options to Spot Opportunities and Stay Safe? | #OptionsHandbook EP018
Black Swan events don't come with a warning. These unexpected shocks can send implied volatility (IV) jumping almost instantly. 🦢
So how can you use options to turn that market turbulence into opportunity — or shield yourself from damage?
📘 Don’t worry! The Options Handbook breaks it down into two easy-to-remember IV patterns:
▶ Sudden Shocks: Spike Fast, Fade Slow 🚀
Think of a surprise bank failure or a global crisis. Traders rush to hedge, buying puts. IV surges in minutes. But once the fear peaks, it takes time for calm to return, and IV unwinds slowly.
▶ Scheduled Events: Climb Slow, Crash Fast 💥
Before earnings reports or product launches, IV builds gradually.
Then comes the announcement, and boom, the uncertainty disappears. Even good news can lead to IV crush, as premiums collapse when the mystery is gone.
It's not about whether the outcome is positive or negative. It's about how unexpected it is, and whether uncertainty gets resolved.
✨ The Options Handbook has more IV insights — plus tips to read market sentiment like a pro. It’s now available in the Tiger Coin Center! 🛒
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