IV is Rising - What to do?

Thursday, 15 Jan 2009

15:30WIB



Dear OPTION Traders,





Yesterday nite, I arrive at home

around 00:45 in the morning

just came back from OPTION Preview

at Hotel ALILA followed by Live Trading meeting



I look at $VIX, and it is Rising

Normal condition, VIX is around 20%

That means, IV is High



High IV is not suitable for Buying OPTION

however, it is a good time to sell



I look at SKF, the IV > 125%

and the good news is, Jan OPTION

will expired this Friday, just 2 days away



SKF is going UP



I sell STO PUT 120 Jan

I Buy BTO PUT 115 Jan

Total Credit 0.40 x 2 contract = 80



Margin needed for this trade is $1.000

I expect this OPTION will Expired worthless

and make 80/1000 = 8% just 2 days!



You still can do it today

you might get 5% just 1 Day!

You change of winning is 99%





Hey, Deposit to your local bank

only make 3% / 365 Days!







Peter Sufandri