You want to be short volatility when volatility is high for that underlying component. Right now the IV of the SPY is not high enough for me, but it won't prevent me from selling calls on rallys. Yes it is somewhat counter intuitive because when SPY rallys IV goes down.
There is plenty of volatility in the market for options sellers. Just not the SPY right now.
Its easy to be long gamma and short theta. And its easy to lose money that way. :) If you want to do this do spreads and or calendars, IMHO. My opinion is this works well for day traders who won't have to worry about theta, but that doesn't fit my style of trading.
AAXN (42.84) big call buying on the June 45 strike.
*******************
Was near 45 premarket, probably sentiment from IRBT upping guidance. Guess I should have taken it..
*************
Sold at 44.82
Yeah last week a lot of stuff closed. So I need to go hunting again. :)
I thought I posted a /CL strangle but I can not see where I posted it. It closed last week but I'm looking at putting another strangle on again in /CL.
Nice trading on HD. I like options because at least I have a chance to scratch a trade with a little market cooperation.
*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.