IV is derived from option pricing models. Brokers provide it in option chains. High IV = expensive premiums.

Variance measures dispersion from mean. Use squared deviations. Higher variance = more risk.

Enter partially, add as trade confirms, exit gradually to lock profits while leaving room for more gains.

Start with low-cost instruments (ETFs, small-lot options), limit risk, and grow gradually.

Draw connecting highs in downtrends, lows in uptrends. Breakouts signal potential reversals.

Use wider stops, reduce position size, and trade liquid assets. Options strategies like straddles may help.

Net Profit Margin = Net Profit ÷ Revenue × 100. Shows profitability.

Confirm with volume, wait for candle close beyond breakout, and check higher timeframe trend.

Operating Margin = Operating Income ÷ Revenue × 100. Higher = better efficiency.

Beware of sudden spikes in illiquid stocks driven by hype. Avoid stocks with no fundamentals.