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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?


To: longdong_63 who wrote (1807)8/26/2000 9:51:54 AM
From: Louis V. Lambrecht  Respond to of 100058
 
ld - not bad for options traders

Volatility is light currently, good for call buyers on distant expirations.
Current IV for SDLI Dec is 68% vs. >100% in May,
CSCO Jan 47% vs. 70%. Buying time got cheaper. LOL.

Looking around for bull call spreads: in times of low volatility you can buy wider spreads for less debit than usual.

In fact, sell puts (or calls) when volatility is high, buy calls (or puts) when volatility is low.

As Flack would say, you can make a profit in any trend.