top options suggestions to profit of spikes in IV. (I'm not a vol-gerbil~ fast and dirty is fine)

[klattermusen]

I've seen some top rank options traders discuss their methodology of capitalizing on volatility spikes.

Some can be too hot to handle like the technology meme stocks.

But others - like WEN and WOOF - when they spike briefly outside their normal volatility range; what would be some fast meat and potatoes options strategies to take profits.

Thank you.

 

[OptionsOptionsOptions]

Sell high......buy low.

 

[GotherL]

I suspect, it's just crafty hedge funds looking for quick gains & taking advantage of the reddit fad.
Dumping shares once it's top trending.

Good luck trying to figure out their next target.

 

[easymon1]

I've seen some top rank options traders discuss their methodology of capitalizing on volatility spikes.

Some can be too hot to handle like the technology meme stocks.

But others - like WEN and WOOF - when they spike briefly outside their normal volatility range; what would be some fast meat and potatoes options strategies to take profits.

Thank you.

methodology of capitalizing on volatility spikes.

what would be some fast meat and potatoes options strategies to take profits.

Thank you.

 

[zghorner]

Long ATM dailies (super gamma) for a quick play if you think the spike will continue.

to take advantage of the high IV (and likely crush that will follow) you could look into selling strategies. Google "high IV options strategies" and im sure that you will find more than enough.

 

[newwurldmn]

I've seen some top rank options traders discuss their methodology of capitalizing on volatility spikes.

Some can be too hot to handle like the technology meme stocks.

But others - like WEN and WOOF - when they spike briefly outside their normal volatility range; what would be some fast meat and potatoes options strategies to take profits.

Thank you.

the issues with vol is that it’s auto correlated until it’s not. That WEN could have gone from 30 to 70 to 150 to 300. If you sold it at 70, you would have likely been done at 300. (Like what happend at gme and amc).

so it’s generally not a good idea to blindly sell vol because it spikes up. You have to sell vol because you think the future realized will be lower than the current implied and you think you can handle any future rallies in vol.