LONG since the open yesterday, result: I GOT RAPED!!! please read carefully

[aeliodon]

Quote from Enfinity:

Volatility...you bought at peak volatility and sold at lower volatility.

If you continue to trade options without an understanding of option pricing you will only be funding the great lifestyle of real options traders.

Nice post.

So I'm guessing:
in a very high volitility market, if one expects both a large move higher and a big fall in volitity one is better off selling puts rather than buying calls - since the fall in volatilty will work against the long call and in favor of the short put?

 

[Enfinity]

Yes, along that train of thought. No substitute for understanding the variables and risk management of such trades though.

Quote from aeliodon:

Nice post.

So I'm guessing:
in a very high volitility market, if one expects both a large move higher and a big fall in volitity one is better off selling puts rather than buying calls - since the fall in volatilty will work against the long call and in favor of the short put?