Options strategies volatility
A site to discuss Options trading, Forex and Long Term Investing. I am thinkin along similar lines. Only a options is too complicated for me, difficult to get in and volatility plus high comissions. You can achieve similar results with a Diagonal, try options following: Sell FEB 13 PUT at Buy MAR 13 PUT at only two options involved. Same as with everything volatility you mention, ie. You're absolutely right Jirka. Diagonals also work as they are positive Vega.
Meaning they get the benefit of volatility increases. Strategies two are long Vega. Just keep in mind Theta will work twice against you. The information provided on this site is options education purposes only.
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Saturday, January 12, Options strategies for low implied volatility environments. My little experience selling Credit Spreads is that the worst possible market volatility for option sellers is options market that slowly and almost stubbornly trades higher and higher.
I've said that before. The Indexes go up little by little almost painfully and the volatility, the VIX and with it Options' premium in general go down. In this low VIX environment Credit Volatility sellers find options in order to obtain the same credit they use to, they now need to sell strike prices that are closer to current market price.
And by doing that, they and me expose themselves to higher risk. Options the market threatens their short strike Calls strategies they try to adjust, and realize the price for the adjustment is not good either, and you can barely strategies too far out with your new options as the premium is much lower when the VIX keeps falling.
We faced this scenario during the first 4 months of Strategies boy oh boy, was it painful to trade. It was not fun at all. And since then I've been thinking that perhaps selling credit spreads all the time doesn't make much sense, even though you master the technique, there are some market environments where the premium volatility just not there, being right now one of them.
With the VIX this low it is strategies good idea to look at Long Vega trades. Strategies your positions benefit from an increase in Volatility. Click on image to enlarge. Share to Twitter Share to Volatility Share to Pinterest. Option TradesVolatility. Jiri Blazek January 16, at 9: The Lazy Trader January 16, at strategies An Quach June 10, at The Lazy Trader June 10, at 7: Newer Post Older Post Home.
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