Any data on what kind of option strategies worked during 2008-2009

R

rvsw

Hello

I'm looking for options strategies that worked during high volatility situations like 2008-2009. I do understand that iron condors, spreads can work in a variety of situations. But I wonder if there are certain categories or certain strategies that will work more than others in high volatility situations.

Any input will be appreciated. Thank you
 
rvsw said:
Hello

I'm looking for options strategies that worked during high volatility situations like 2008-2009. I do understand that iron condors, spreads can work in a variety of situations. But I wonder if there are certain categories or certain strategies that will work more than others in high volatility situations.

Any input will be appreciated. Thank you
More...


It was tough time to trade options, I think.

On one hand premiums were inflated which indicates that it was a good time to sell Puts and Calls. However, then came the crash in 2008 which wiped out short sellers. Without a hedge selling premia during that time would have been a very bad idea (or in any bear market). The question then would be, was there a way to hedge without it eating up all that rich, inflated premia.

On the other hand, buying options during that time would not have been advisable at all. Even if you were right about a big directional move (and there were many back then), the option price for the most part already priced in moves which meant that during a volatility crush you could been right about the move and still lose money.

2008-2009 was a risky time to trade / invest regardless of what the cowboys out there say.
 
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