Browse Stacks: Business: Finance: 20160825_lowvol1[1].png

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part of the article:  

..."Meanwhile, we are now treated to stories of state pensions in Hawaii and South Carolina implementing systematic PUT SELLING programs. While the VIX currently offers a tasty premium to realized vol, one need not possess a PhD in finance to understand how this can go badly awry. (Actually, given the financial history of the past couple of decades, perhaps we should say that one needs to not have a PhD to comprehend the risks of such a systematic strategy?)"...  

My GOD what a nice band of donkeys if that's true!  
I wouldn't be surprised, Einstein said that the only things that are infinite are the universe and human stupidity (and that he wasn't 100% certain concerning the universe...lol)  

Anyway, fits nicely in my short medium term bearish scenario

20160825_lowvol1[1].png

Comments

Blue DonkeyBlue Donkey
Selling puts is a legit strategy if: 
 
1) You want to buy stock and sell puts to buy the stock 
2) You sell covered puts (you have a short position in a stock) 
3) Sell vertical spread for credit which is good strategy in range bound markets 
4) You short futures and sell puts in the highly correlated stocks with high IV 
The lis of course goes on and on 8/27/16
Silver SingularitySilver Singularity
ROFL I love the last one! 
Best way to loose in those times IMHO! 
And for the first one you'll better have a LOT of liquidity because a crash a lot bigger than expected can be awfull for you 8/27/16
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