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Tag Archive | "premium"

Choppy Waters Ahead

Tuesday, October 14, 2008

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We mentioned yesterday evening in a note to subscribers that in the past, high volatility environments have been the best times to sell option spreads.  Rising volatility alone isn’t a sufficient signal – as anyone who was short volatility during the past few weeks can attest.  But once high-flying implied volatility readings turn the corner or flatten out, that’s often a good time to sell premium at those elevated levels. From a directional perspective, there are signs that, two…

Range Bound Markets

Thursday, August 28, 2008

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Quick, somebody sell Tim Knight some option premium! There’s something wrong with the picture at left, but nothing wrong with these markets if you’ve been a premium seller for the past couple weeks. On the other hand, even deft swing traders are getting whiplashed around.  Everyone is betting on a breakout or breakdown after the holiday, and they’re probably right.  Until then, it pays to get paid to sit on your hands. To be fair, the phenomenon pictured here is…

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