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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Clappy who wrote (4882)	6/13/2001 7:39:17 PM
From: UnBelievable	Read Replies (1) \| Respond to of 209892

I Would Suggest Caution In Option Collars When The $VIX Is So Low I was doing great trading options for quite a while. I traded puts and calls on the $SPX. I tried to maintain a hedged position in which I never had less than 20% of either, and would tune the mix based on my feeling about the market direction. This really worked well while we had a lot of volatility. Then about the start of May volatility decreased. On Jello days you get to watch both your puts and calls go red. In addition the lower volatility means that the spread between the bid and the ask becomes much more significant to profitability - and it has the effect of locking you into positions because unless you are selling into the market your get clipped. So for now I'm trying to hone my skills as a futures daytrader. I will say I like not caring which way the market is going except for those brief times during which I have an open position.