Good Strategies for These Times

Discussion in 'Options' started by exQQQQseme, Nov 23, 2008.

  1. As options traders we have the ability to profit in any kind of market. Let's start a thread of various strategies that work will in times like this.

    I'll start the ball rolling with...

    Bear Put Spreads...Current Month...Look for stocks with unusually high IV...Long side $10 higher strike. 20% monthly return pretty easy to obtain. Often much higher, and not necessary to wait until expiration. Ideal scenario is if the short side gets assigned early. Simply pull the trigger on the long leg and get maximum profit.

    Example: XYZ selling at $35. Buy $45P and Sell $35P. The bigger the IV differential, the better.

    Good luck and Happy Thanksgiving.