Don't sleep on volatility, says Barchart expert Rick Orford.
Rick Orford at Barchart highlights the IV/HV ratio—implied vs. historical volatility—as a screening tool: ratios above 1.05 signal expensive options, below 0.95 signal depressed premiums. The metric helps traders quickly spot mispricings between expected and realized market moves.
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Options traders can spend hours searching for the right stock, studying charts, comparing fundamentals and trying to predict the market's next move.
But Barchart expert Rick Orford argues there's another question worth answering before any of that:
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