Also, as you know.. volatility and volume are almost synonymous. So with more volatility comes more activity, thus tighter spreads, cleaner fills, and magnitude of movement to scale in and out of.
Because vol is mean-reverting you'd expect one vol point change in the front-month IV to be accompanied by a somewhat smaller one in the back-months. Yet, the back-months implied vol tend to move much more, overreacting, thus giving opportunity!
Earnings trade: Long the Nov 19/23 call spread @ 1.91 risk Closed @ 2.29 CMRX and SIX STILL bullgarding.. its a lovely sight!
I beg to disagree. But what do I know I have been a full time options trader for only a few years. As a mom and pop amateur retail I don't have the tools and weapons, so keeping things simple, betting with the market's long term uptrend is the strategy that worked for me. I must say with this bull market long on its tooth I am not sure how much longer it is going to work?
I've completed liquidated my $CMRX and $SIX positions CMRX +0.50 cents on shares SIX +0.75 cents off Nov40callz