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

To: TradeOfTheDay who wrote (2138)	6/16/2000 1:23:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 10876

Your earlier discussion of the strategy for playing volatility makes sense to me, but it's a bit of a gamble to find a stock with low historical volatility in the hopes of a rise in implied volatility. In the earlier example you used CREE, which did exactly that earlier this year. I had a 10-bagger on cree calls, and later used straddles as a way to profit from the volatility. However, its implied volatility was already priced in, and the stock didn't move enough for me to make a profit.