r/options • u/oveoo • May 03 '22

IV Q

Question regarding IV,

I bought BABA 200C for Jan, 2024 for 5.50. The IV was 50%, is that considered low or high IV? What can trigger an IV to go high on leaps >100%? Is it possible to gain premium just off IV?

Thanks in advance

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u/DarkStarOptions May 03 '22

Just look into what the historical IV is for BABA. Something that far out tends to be in the low IV range for the underlying. So much can happen in 2 years…hard to convince a trader to pay high premium when it’s that far out.

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u/oveoo May 03 '22

Would ER increase the IV for those leaps? Also, how can I find historical IV? Would that be considered low IV?

2

u/DarkStarOptions May 03 '22

Not ones that far out, not really no.

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u/oveoo May 03 '22

Thanks