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To: Jon Tara who wrote (83752)4/23/2003 8:59:55 AM
From: Jack of All Trades  Respond to of 99985
 
I would think straddle over strangle since premi (vix) is low. I would use a strangle with a higher vix to get the leverage... JMO



To: Jon Tara who wrote (83752)4/23/2003 11:14:25 AM
From: Jon Khymn  Read Replies (1) | Respond to of 99985
 
That is, an option strategy that will return a profit if volatility rises, irrespective of price

Don't know if there are any pure volatility play.

But in general, if one feels the volatility is going up,
buying both call and put should be profitable, with higher Vix both call and put premium would go up.
(And vice versa if one feel the vix is going down)

Could you explain some of these option terms?

Straddle
Collar the position
bear spread

TIA