Short Vega

Discussion in 'Options' started by Sashe, Oct 12, 2007.

  1. spindr0

    spindr0

    With these high IV situations, sometimes butterflies can be had for peanuts (I did not check LDK quotes) - almost no risk. IV contraction can put you in the black quickly.

    And obviously, if the IV is up there, look for the reason and see if there's any date attached to the pending event (earnings, FDA announcement, etc.)
     
    #11     Oct 13, 2007