>looking at historical IVs for UPS to determine how it might impact my options trade, realize my options are actually at historically low IV
>It's a straddle write, options calculator places my max profit slightly above my 85 strike, this is typical for straddles, most are technically strangles because they have a slight bullish outlook unless you use a ratio of call-to-puts or even shares to get it delta neutral (this requires regular rebalancing to keep making it delta neutral)
>IV is supposed to be a reflection of volatility, as in estimating future risk and adding it to the price. In reality for complicated reasons I don't know, IV is the expectation of downward movements. upward movements decrease IV.
>ergo, if the price increases it comes closer to the max profit that is above the strike, if it decreases in price IV increases and the options increase in value
Any options bros wanna chime in?