veteran option traders like Tom Sonsoff say that in a study of 5 years data, selling straddles or doing iron butterflies have more profit, if the implied volatility is higher, ~=>50. since we are in a low vix period, is it less suitable time to do iron butterflies or short straddles now? high implied volatility = high vix? and low implied volatility = low vix, or have they nothing to do with each other?
When you buy a var-swap you are "exchanging" current implieds (strike) for realized. The analogy holds for isolating vol and excluding any dynamic hedge. Selling 50-line is great if realized goes to 40. Less great if it goes to 80. Sosnoff is another bag of cats.
Are you referring to 50% annualized implied volatility or to the Tasty Trade percentile, which I *think* measures a constant (30 day) option over a year and then ranks today vs. the range?
Implied volatility precedes volatility and its best example is when she says to you, "we've got to talk"
Yes, implied volatility is future looking, predicted volatility right? is this not the same as vix? as a sizeable number of traders look at the vix as a predictor. high vix = high implied volatility?
If August 1 VIX wave top is taken out, its Adios amigo VIX double bottom on monthly = Empire Buster rocket launch And that's not even counting Putin's play, that's just Obama alone
Vix daily: see the circled wave 4 in chart? That marked a 1-yr consolidation in the Vix. That be the signature of an ending downwave in that the next wave down is the terminal wave.
Empire busting = here we go adios = here come the Chinese Double bottom neckline broken already but nobody paid attention. Buy Salvation Army stock as Americans pour in in droves
You probably know this already but its worth drilling it in anyway, personally I like it when the wise say it to me for it does wake me up High Vix = high fear Low Vix = high complacency = no fear Now review the present situation especially with some of the threads here at ET going FREEEEEEE money, S&P will never go down never never never = no fear = complacency AfterLos avoids such people like the plague and uses their stuff to further confirm CAUTION and PREPS for reversal As you should easily gather: Vix = Warren Buffett's advise at Tops and Bottoms