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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (10786)	5/15/1999 5:35:00 PM
From: Teresa Lo	Read Replies (2) \| Respond to of 14162

I promised to come back with some basic reading on volatility and rather than writing a bunch of stuff, much of it is here at the TradeHard site. There's a 3 day free trial offered, so here is the list of articles to hit: Robert Pisani www2.tradehard.com Larry Connors www2.tradehard.com www2.tradehard.com Jon Najarian www2.tradehard.com I have one question: Since I rarely trade options now and was only involved in selling puts, I was wondering if my perception is correct that VIX seems to be high during periods of sell off and rather low in comparison during highs. How does one time sales of calls? In my mind, when VIX is the highest, the premiums are the fattest, but since VIX is mostly highest when the market is down, how does one go about selling calls that won't get called away? I did a quick correlation using my TradeStation between price and volatility and just using eyeballs, it seems to comfirm my idea that VIX is inversely correlated to price, going into the -.8 area quite often but during rallies, it rarely gets over +.2, which is close to no correlation. I read the W.I.N.S. summary that Herm posted and I'm pondering it now...how does tagging the BB work with VIX...help!