Profit from vol

Discussion in 'Options' started by oriole, Feb 20, 2011.

  1. oriole

    oriole

    Hello guys, new fish here :)

    I noticed that $VIX is pretty low again and options should be generally cheaper.

    So I was wondering if smart guys are using straddle or strip as market looks to go bearish more likely.

    Thank You!
     
  2. tomk96

    tomk96

    way to cause the sell off.
     
  3. empee

    empee

    lifetime ban
    :D
     
  4. oriole

    oriole

    Really guys? :confused: My first post and I receive this :confused: As I said, I am new about this you could at least give me clues where I'm so wrong.
    Thanks!
     
  5. oriole - the def of bad luck: getting banned from ET on your first post. Anyways, you can profit from vol like you mentioned (straddle/strangle) w/ no directional bias or you can play the short side by buying puts or ratio spreads (my preferred strategy due to asymmetric return profile = limited risk/unlimited reward).
     
  6. It may be better to trade the underlying instead for liquidity and simplicity sake. :cool:
     
  7. tomk96

    tomk96



    you posted about buying cheap vol on a day the market tanks and vol explodes. it was a joke sorry.


    oh, i expect a check for my losses in my IRA. kthx.



    are you looking to hedge or make a vol bet? looking directional?
     
  8. So glad Vol got back to 20's :)
     
  9. i don't know how to trade if VIX <25

    life sucks
    :(
     
  10. tomk96

    tomk96

    i just wish it didn't do it at a time being short it.
     
    #10     Feb 25, 2011