Low volatility: How to sell CC in a dull market?
- Thread starter a529612
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You mean you didn't sell the Jan 500's in May like I suggested?
They were $14 then. they're $2.50 now.
Wish I'da sold 'em.
They were $14 then. they're $2.50 now.
Wish I'da sold 'em.
Don't I get a cut from that?
That is the way it has been playing ...Volitility will start to build up once the Sept options expire. It has done this over the last couple earning periods.
I am not even going to start looking at it until after the expiration of the Sept.
One nice thing NOW about the volatility being low... If you are bullish GOOG, look at buying a Long 340-350 LEAP (Jan 08)
Use it for your covered call, once the stock has gone back near 400+ area (200 day ma), then sell an ATM or OTM call.
FYI...GOOG, CCI (14) is starting to approach the Zeroline again, with setting higher lows. This usually does one zero line reject before it goes ahead and breaks thru...just an observation...
In my experience it is easier to pick bottoms in volatility than pick tops. What's more is that the risk reward analisys works out better (at least for a trader of my skill- I can see a post by riskarb making me look a little dumb coming up soon) from the long option side during low volatility environment. However when ever I try to trade vol I end up making more money from directional trading, not a bad thing but it limits my insight into vol trading.