Recent content by BakedWafer

An example: APPX has pending news, so the stock will be making a large move. IV is about 3 times normal volatility. You could expect to see a 50 - 100% drop in volatility in certain options for this underlying (APPX) in the near future. How would your trade it, if at all. Regards

I guess I know to sell vol. but I am looking for some way to cover my downside. Regards

But would you give any specific recommendations as to how? Just a short naked put, or are there other options?

Let's say I know there is going to be a huge drop in volatility on an option. What would be the best way to profit? Regards