SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RoseCampion who wrote (2004)10/27/2000 12:54:52 PM
From: KFE  Read Replies (1) of 2241
 
Rose,

The severity of the IV collapse was probably a result of the lack of a consensus as to which way the earning would go. I have traded a similar IV play on FOMC meetings and earnings when there is significant uncertainty involved. I will put on a neutral spread about 2-3 weeks in advance of the announcement and exit the position the day before the announcement taking advantage of the spike in IV building up to the announcement. Holding through the announcement can be dangerous because the collapse in IV can be overshadowed by the directional movement of the underlying.

Regards,

Ken
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News