Wednesday, July 29, 2015

Option Premium Issues

I would like to buy calls when my system requires me to and not be concerned about it being the wrong time due to high IV and inflated premiums. (note: I can't write naked options).

So I was trying to figure out a way to hedge volatility (this all pertains to options on stocks, btw). The only thing I could think of is selling short VIX. But doesn't seem like the best solution because volatility could be high on one stock and rock bottom on another.

Any other better methods? Also, if shorting VIX is a viable method, how exactly would i go about equally hedging my long call?



Submitted July 29, 2015 at 05:43PM by paligap351 http://ift.tt/1fIQ0qK

No comments:

Post a Comment