SLV implied volatility is ~50 right now. i have very rudimentary knowledge about options, my intuition tells me that to sell SLV volatility now could be easy money. but what's the best way of doing this?
i am thinking of writing straddles at various prices levels as SLV is moving around in the coming months.
is May 20 2011 too close?
if i write straddles every 5% move in SLV is this a good strategy (e.g. SLV $40 i write $40 straddle, SLV moves to 42 i write $42 straddle, etc.)?
i will be purchasing Wings to protect myself if SLV decides to really go nuts. but let's focus this thread on straddle construction first assuming that the black swans are taken care of.
i am thinking of writing straddles at various prices levels as SLV is moving around in the coming months.
is May 20 2011 too close?
if i write straddles every 5% move in SLV is this a good strategy (e.g. SLV $40 i write $40 straddle, SLV moves to 42 i write $42 straddle, etc.)?
i will be purchasing Wings to protect myself if SLV decides to really go nuts. but let's focus this thread on straddle construction first assuming that the black swans are taken care of.
.