Long Straddle Low IV

What about being long straddles when IV is low ?

 

What defines low?

 

Let's say low (IV/HV) < 0.5
Or when VIX is at 20-30.
These kind of lows.

And buy medium term options.
By that I mean 3-4 months until exp.

 

Buy if you think the underlying will move enough to offset the debit paid for the options. IV doesn't matter.

 

Mmmh ...
You're off topic.
But thanks for the input.

 

You think Vix 20 is low? What about Vix 15?

 

I told you.
If VIX < 30 then it's low.
Kappish ? So 25, 20, 15, 10, 5 is low.
If 5 is low. Then 2.5, 2, 1.5, 1, 0.5 is low.
If 0.5 is low. Then 0.45, 0.4, 0.35, 0.3 .. is low.

 

LOL. Tell me again what is the average of VIX in the last 5 years? Just curious

 

Min10.32 Avrg17.47 Max48
So what ? I could have bought cheap straddles.

 

Great! And have you backtested it? Did it make money?