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You got that right, and if one was smart, you would go find the premium elsewhere and leave the broad based indices to low Vol strategies. Yeap, with the appropriate strategies applied across ones portfolio. I guess I’m kidding myself, because I’ve primarily been short the market in...

I seek out high probability trades on 100% IVP (IV that is at a 52week high) and HV is contracting. Otherwise I use other strategies for different IVP levels.

I agree with what you are saying here, Vol has no upper bound. It would be interesting to see a study of Vol expansion on a daily basis, say during the financial crisis. What I would want to know is if it expanded faster on a per day basis quicker than time left in an option trade. Now I'm...

Not necessarily. There are strategies for increasing vol. If vol is low relative to where it has been for a particular underlying, then use those types of strategies regardless of direction/range one is betting. This does not mean you will win the bet/trade, but a least a possible vol...

I did an earnings play on NFLX the day of their earnings announcement (they announced after market close) and their IVP (Implied Vol %) was I believe greater than 80% at the time. I don't have the #'s anymore (spreadsheet), but I recall that I was able to get about ~3.2SD (just sold 2 calls)...

Brighton, By definition, a spread can't win or lose more than defined at trade entry (at least conventional spreads like verticals, IC's, butterflies, calendars, diags, etc.) I would believe in that case, the risk is limited. Even if one (some) of the options get exercised, the risk profile...

Brighton, Point taken. Well then, I guess its good to know that I'm learning from someone with over 30+ years of trading experience, Tom Sosnoff!

Maverick, Interesting comment and I value people’s opinion. I currently don’t sell naked premium in the indices do to the low vol, but there are plenty of strategies for low vol also (debit verticals, calendars, diagonals, etc.) So I truly believe that one needs to keep cognizant of the...

I guess that depends on trade strategy ;) I'm anxious to be part of an increasing Vol environment as a premium seller. I believe it will allow me get FURTHER out of the money (3 - 4 standard deviations away from the ATM) and collect premium (for those types of strategies of course).

I manage my risk control on under entry. I trade extremely small on naked positions. I don't sell naked in stocks I can't afford to buy 100 shares in, I stay with credit spreads in that case (if vol is high of course). When it comes to spreads, if I'm not willing to lose the max lose, then I...

Hello All, I’m relatively new to ET, I’ve had an account for a while but didn’t post much. I started to take trading, and specifically option trading, seriously in November of 2012 (practiced the month of October with papermoney then went live with real money in Nov). Anyway, now that...

In my opinion, even if one decides to do a directional trade, they can create an ATM debit spread which would allow one to use a fraction of the money as oppose to the actual stock price. I guess it may depend on the amount of capital one is working with... To me, what matters for choosing...

Razvanneagu, Check your private messages, for some reason my post to this thread isn’t coming through. Anyway, after you read my private message to you, then reconsider some of the comments here. Like I said in my private message, I didn’t know a thing about option trading prior to...

If I have any of the below Windows 7 updates installed: KB2778344 KB2778930 KB2808735 KB2829361 KB2850851 My TOS-Excel spreadsheets no longer work. This list is good up to the date of this positng (August 12). As new updates come out, you will need to keep track of what causes...

I appreciate the help! This was the fix I needed.

I am unfamiliar with VBA code/coding and was unsuccessful getting this code to run. I pasted the code to Sheet1(Code) area (In the “Microsoft Visual Basic for Applications” window), saved the file, then went to Sheet1 and input: =TOSDDE(“AAPL”, “BID”) When I press enter, all I...

I am unfamiliar with VBA code/coding and was unsuccessful getting this code to run. I pasted the code to Sheet1(Code) area (In the “Microsoft Visual Basic for Applications” window), saved the file, then went to Sheet1 and input: =TOSDDE(“AAPL”, “BID”) when I press enter, all I...