David Settle — Implied volatility is overrated - Options trading framework

<p><span style="font-weight: 400;">Hello everybody, our guest today is <a href="https://twitter.com/davidsettle42" target="_blank" rel="noopener">David Settle</a>. David started in the investor education world in 2004 with Investools. He&rsquo;s coached hundreds of individuals on how to invest and trade the stock, options and forex markets and he currently holds a CMT designation.</span></p> <p><span style="font-weight: 400;">In this episode we dive into David&rsquo;s options trading process and how he uses a top down market posture approach to inform his market bias and trade decisions.&nbsp;</span></p> <p><span style="font-weight: 400;">We discuss some contrarian views David holds about selling options that I really enjoyed hearing as a fresh perspective.&nbsp;</span></p> <p><span style="font-weight: 400;">We then get into some very practical advice on a lot of topics like: being willing to lose on trades, not getting attached to trades, selling options, volume profile, trading earnings, VIX term structure, and a whole lot more.&nbsp;</span></p> <p><span style="font-weight: 400;">Please enjoy this episode with David Settle.</span></p> <p><strong>Key learning points</strong></p> <ul style="list-style-type: disc;"> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">&nbsp;Don't get so attached to trades by keeping size small</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">&nbsp;Know how much you are going to lose and be willing to lose it</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">&nbsp;Directional strength using relative strength</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">&nbsp;How David uses volume profile to spot opportunity</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">&nbsp;High implied volatility stocks are high IV for a reason</span></li> <li style="font-weight: 400;" aria-level="