Recent content by short&naked

The 2004-2005 period was a low vol environment with range bound price action. What Trend following strategies were difficult to execute and options selling was hard due to low premiums. What kinds of strategies would work in this environment? What about Selling longer dated options for higher...

What is your best guess?

If the market moves fast enough, very likely. Liquidity gaps can occur at any time and have become more frequent over the past 10 years. The alternative is to buy a put which you mentioned in reference to the credit spread, but this will weigh down your returns considerably.

Could you please further explain: "Gamma is cheap but everyone's long it, so that keeps the underlying in an even tighter range." Also, interestingly the recent 2017 period saw low VIX coupled with a very bullish move.

What strategies worked?

With the VIX being low and there being little realized and implied vol. How did options sellers survive this time period?

Given the example long spot position in the ES below (or other SP500 equivalent), assuming that the position is held for a week or two, what would be the most cost effective way to insure the long swing trade against anything larger than a 2% loss?

until the market snap back up, or?

Does anybody have experience/success selling put spreads by selling the long protective call when the market is still rising (or topping) and the call is cheap and then selling the expensive put after the market drops? This would seem to improve the horrible R:R of the standard short put...

Most of the time IV ends up being higher than realized volatility, however during huge market sell-offs IV tends to be lower than realized volatility. Despite this why it is considered a good idea to sell rich puts after such a sell-off? In other words, how is it possible to profit off of these...