First off, sorry about the long post. I needed to get my point across and did so as briefly as possible. I think/hope you'll find my comments interesting. I've read many times how an Option Trader would be better off buying options when implied volatility is low, because it means they're paying a lower price which in turn reduces the break-even point, thus increasing the probability of profit. By the same token, Option Traders would be better off writing options when IVol is high, because it means they're receiving a higher premium which in turn increases the probability of profit. This has been the wisdom gleaned from every option trading book I've ever read, and it seems to make good sense. Because a drop in IV from a high level back to a normal level can negatively impact the price of an option, by a significant amount. So don't buy options that have relatively high IV levels, right? Only consider selling them, Yes? Practice this over and over and make money, sound right? Well, according to the option gurus this is the way to do it. But let me ask you this: 1.) Who's selling low IV options? Someone is. 2.) Who's buying high IV options? Someone is. 3.) Are these somebodies all unknowing amateurs? Here's another thing to ponder. If IV is low, it's low for a reason. The market makers and option traders do not expect much movement in the underlying. If the most well informed market participants agree that the underlying is not likely to move much, is this the time to buy options? You know something they don't? If IV is high, it's high for a reason. The market makers and option traders expect the underlying to move a lot and be quite volatile. If the most well informed market participants agree that the underlying is about to make a significant move, is this the time to sell options? You know it won't move much? Know something they don't? Of course if you can accurately forecast future volatility, you could do very well and make a lot of money in the options market. And in essences, that's what you're doing when you buy cheap options (or sell expensive ones). You're making a forecast of how volatile the underlying will be in the future, and you're betting that you're right. So when you buy an option w/low IV, you're betting that the underlying is going to move a lot (your prediction of future volatility), and the professionals (who have low IV priced into those options) are wrong. Yet that's the message that option books and gurus are preaching; buy cheap options and sell expensive ones. I'm just wondering how wise it is to assume those who are on the floor everyday, making a market in options and hedging their positions, are dead wrong when IV is at extremely high or low levels. Maybe it's better to buy or sell options when IV is somewhere in the middle, near its norm? Or perhaps a punter should buy when IV is high, because according to the pro's and well informed, a move in the underlying is imminent? Just some thoughts I've been pondering lately. I welcome your comments or opposing viewpoints.