VIX futures jumped 39.27% today. Blake Young told viewers to buy volatility this morning, hours before the spike hit.
Now Blake wants to sell it. He found three stocks where options already cost too much.
Blake runs every trade through one filter. He checks how much the market charges for options before he picks a direction.
Low implied volatility makes him a buyer. Once a stock’s IV percentile climbs above 50%, he turns into a seller of premium.
He also watches for a warning sign at record highs. Confident buyers usually keep volatility quiet near the top.
When implied volatility rises on a fresh breakout, Blake treats the move as suspect. He expects the stock to fall back.
Three names fit that profile right now. Tonight’s video walks through each setup:
- Microsoft traded near record highs with a 53% IV percentile. Blake wants a pullback to fill the gap at 522 before he sells the at the money put for about $16, roughly a 3% return on risk with a breakeven near $500.
- JD broke out with a 76% IV percentile. Blake can sell the put at the breakout level for about 63 cents, a 2.4% return on risk, and the stock would have to fall $1.46 to reach that strike.
- Kroger sits near record highs with an IV percentile above 55%. Blake sells the 66 put for $2.13, a 3.33% return with nearly a 7.5% margin of safety and a breakeven near $63.85.
Kroger could erase its entire last month of gains. Blake’s put would still barely lose a penny.
Blake isn’t buying Microsoft today. He’s waiting for the gap to fill before he collects that premium.
His rule stays simple. Sell premium when volatility runs hot and buy options when it runs cold.
