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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: Mark Z who wrote (382)	5/17/2000 2:19:00 AM
From: Tim O.	Read Replies (1) \| Respond to of 10876

VCP <g>. What about the checking the Implied Volatility of the underlying (in this case OEX)? Do you have a tool/site where you can check real-time IV? One idea I have about this play is to go long or short the underlying (in the direction of the move) when the news/move happens. The idea is to protect from extreme moves until you close the naked positions. The trick here is to not get whipsawed. You can do this for NDX/QQQ, SPX/SPY, DJX/DIA. Haven't actually done this, but just thinking out loud. Also... maybe play it out the other way, too -- volatility expansion play. Buy a strangle/straddle maybe 2 weeks out while volatility is normal and then sell when the volatility expands. If the market moves a lot in one direction, you could even make money from the strangle/straddle itself. Any experience doing this?