If someone doesn't know how to trade and doesn't have an edge yes. This is extremely stupid. Your P&L is the gauge plain and simple. No one can tell you yes or no to this.
I dont think you got my point.. I was basically saying that anytime vol explodes after a hard down move in the market,should the market rebound the implied vols get destroyed.. Odds are if you are long vega you will be facing a major battle to overcome the contraction in vol.. The best example is the day after the 87 crash when the market exploded almost every option on the board was down...
You don't know what you are talking about. You can structure an option position that addresses these issues: Read my post in this thread http://www.elitetrader.com/vb/showthread.php?s=&threadid=200040
What about purchasing LEAPS Out of the money with the intent of the call being ITM within the long-term time frame of the option? Time decay is less of concern, right?
1) You are buying the wrong calls. Do not buy OTM options. 2) Consider calls as a stock substitute. If you must buy options, then consider buying ITM options with a delta in the 70 - 80 range. The time premium is small and you do well if your bullish prediction is correct. There are better strategies than call buying, but if that's what you want to do, give yourself a chance to win. Mark http://blog.mdwoptions.com