Explore Your Options by Jay Kaeppel
OPTION STRATEGIES FOR PROFITING FROM EXTREME IMPLIED VOLATILITY
The recent coronavirus panic in the market appeared to push implied option volatility to extreme levels. I’d like to sell premium to take advantage of this, but given the extreme uncertainty regarding the future direction of the market—let alone individual stocks—is there a way to play that doesn’t involve extreme risk?
As always, there is risk in any option trade that you might consider making. The real questions are, “what are your reasonable expectations,” and “what type of risk are you willing to accept?” ...