Calls and Puts for Income Message Board

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Strategies & Market Trends : Calls and Puts for Income

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From: Delfino R Zavala	1/6/2013 4:02:16 PM
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Put Option Selling I have read on this board, and heard this from other smart options trading people that put options should be sold when IV is high. This I acknowledge is when the premiums to sell the options are the highest. Isn't the IV high because the price of the underlying is expected to swing up or down significantly in the immediate future?? So I guess I am asking when we sell puts with high IV and get a good chunk of premium, we really need to be confident that we picked the right direction the underlying will move toward? Right?? Also, I guess we would have to be ultra vigilant on our position and get out if we get to our predetermined exit price. What am I missing? Thanks Delfino

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