how to play the IV crush in a registered acct

Discussion in 'Options' started by Abundance Magnet, Aug 11, 2018.

  1. Trying to figure how to play the IV crush in a registered acct. Is there any way to play the IV crush without using an option selling strategy?

    thanks
     
  2. Butters
     
  3. SmallFry

    SmallFry

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  4. Hmm. Wasn't it a standard strategy for the floor guys to be short vol in their registered accounts and have the hedges in the regular one. Just wondering if that's still possible
     
  5. JSOP

    JSOP

    This will depend on what you are trying to trade. Are you trading VIX products? Are you doing earning plays?
     
  6. No vix products. More for earnings plays. Also trade some indexes which also can have an iv spike, but not the same typical iv crush effect.
     
  7. JSOP

    JSOP

    If it's for earnings play, what you can do is buy options when the IV is relatively "crushed" together with a position in the underlying before its earnings announcement and then close the positions either before or after the earnings. You can buy the options either as a hedge or additional position if you feel really strong about your conviction.
     
  8. Butters