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Non-Tech : Dorsey Wright & Associates. Point and Figure

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To: XOsDaWAY2GO who wrote (9039)8/24/2000 6:14:37 PM
From: Oral Roberts   of 9427
 
<Would you please tell me why buying puts would be better in this case of low VIX.>

I'll take a stab at it. Low VIX means low volatility which equates to a much lower price on anything you write. Since you are wanting to write you must think the stock is going down or range bound because of the low VIX you can buy puts with very little premium built into them, quicker profit if things go the way you want.

When volatility is high a covered call ATM that you write now for 2$ might go for 5$ then.

Jeff Roberts
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