The Gimmes and Gotchas of IV Expansion

As premium selling tastytraders, we're always thankful for an IV expansion. More IV means higher IVRs <a href="https://ontt.tv/2KeO9fU">Implied Volatility Ranks</a>, which means better entry points for new trades. This same IV expansion, however, does have a negative effect on our current positions. As we're <a href="http://ontt.tv/2nS9krG">most likely to be short vega</a> with our current short premium portfolio, increasing volatility is going to act as a drag on those existing positions.