I was told professional traders don't trade just one direction but has a long / short portfolio of different sectors etc. They would look at the overall portfolio and decide to "unwind" trades if they see IV to increase in the near future or cut off and replace under performers. Diversified portfolio to me sounds - More Brokage fees Buying Hedges - More Brokage fees If you have a "Diversified" portfolio of 25 stocks ( They say this is normal for a prop trader...). That's 50 transaction fees. Seasonally, you'll see IV go up.. so you start to "unwind" your positions. More fees. When IV goes down.. You do the opposite... Then the day comes when you take profits. I wonder who'll be happier. You or your broker.