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01/11/14 12:04 AM

#18151 RE: CortesInvestments #18149

Well.... Its like this, Ive never heard of WALLSTREET JESUS, Dont know who he is... And I dont give a damn who he is!!! DONE

And yes, u are correct. As IV rises while u are holding those options they will indeed increase faster. Actually, Ive seen many times when options will increase with a rising IV even when the stock is trading neutral. Pretty cool shit!! This happens most around 2 weeks before the ER for a stock.

Nope, U CAN NOT MAKE MONEY ON A FALLING IV like u can with puts on a stock. I mean yes, u can still make money on an options trade with an IV thats falling. But not an IV CRUSH. It all depends on how fast that IV is falling, thats the only way u can answer that question. The worst IV crushes or collapses are the DAY OF THE ER Release, Or the very next morning
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leemalone2k3

01/12/14 9:53 AM

#18166 RE: CortesInvestments #18149

One of the easieat option trades is to "sell short" option premium with high IV. When the IV drops, the option decreases in value (as long as the move isn't larger than the implied move) and then you buy the option back cheaper.

There are many ways to sell option premium without being naked short. Learn about option spreads.