How To Deal With IV Spikes
United Health implied volatility spiked
A chain that lights up overnight
UnitedHealth implied volatility jumped overnight and the whole option chain lit up. Rich premium is exactly what a premium seller wants to see, and it is also the moment most mistakes are made. This clip from a live Elite Trader call shows what I did instead of clicking.
Price first, then ask why
I priced the iron condor at the new volatility to see what the market was paying for the risk, and only then went looking for the reason behind the spike. A move like this has a cause, a headline, a filing, a rumour, and the trade depends on whether that cause is done or still unfolding.
Trade it or wait
The rule is simple: an event that is already public and priced can be sold; a story that is still developing gets a day. The clip walks through the chain, the news check and the decision in real time, so you can see the order of the steps rather than only the result.
Every Wednesday we run a session like this on a real portfolio. One free lesson a week lands here; the full calls and the archive are part of the Elite Trader Plan.
Education only. Nothing on MacroDozer or The Desk is investment advice.