What is the best IV to buy and sell stocks and Index options?

General
1

For Stocks: Buy when IV is below 40 and sell when IV is above 40
For Index options: Buy when the IV is below 20 and sell when the IV is above 20

Is this correct?

1 Like
2

Anyone?

3

IMO Buy and sell decision should not be solely on IV. If IV is high and you want to short, then you are also carrying a higher risk for that premium. If the underlying set up suits you + IV is fetching a higher premium, you can short it ( and vice versa). Hope it helps

4

Yes, thanks. But is 40 and 20 IV correct value?

5

No, It is to the normal range of that particular underlying. for some stocks it will be 30 / 60.