That's where appropriate position sizing comes into play. Are you saying you are constantly short delta and long gamma.
No, I trade where there is an edge. I don't blindly sell premium for the positive neurological feedback loop it provides.
You have the formula wrong. IV should NOT equal HV. IV = HV + risk premium. IV HAS to be higher to offset the risk premia.
Not instantaneously. HV contains realized risk. IV contains implied future risk. What other risk premium is there? Please educate me (not meant to be sarcastic).
Yes, IV contains the implied "forecast" for risk in the future. And that forecast adds an "extra" risk premium to compensate for the uncertainty. It's not just "higher" for the kiddies to splash around with in the pool. You act like that premium is there for the taking. It's there because it HAS to be there. Hence why there is a steep put skew in the SPX vs a negative call skew.
Skew is there because of the implied differences in velocities of gamma between the two directions--not because of general uncertainty. I'm not sold on the notion that the extra risk premium has to be there.
I think the point is that "extra" risk premium is there because there is actually real risk present. Always remember, no free money, ever.
I don't need to sell it to you. It's widely disseminated information in every micro-economics textbook in the country. Or you can believe it's just there for you to take and spend how you please. At the end of the day, people believe what they want to believe to fulfill whatever truth they want to manufacture.