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For those wanting to sell volatility as a new trade...
It is important
a/ to wait for histvol to start making the mean reversion trek, that has not
yet happened, and one needs intraday capability.
b/ to understand the basic market dynamics re fear.
Sometimes, if fear is very high, it is prudent to pass on the trade no
matter how rich the perceived premium for that fear.
Here is an example from 1998 to illustrate how this trade can bite you in
spite of usually being a good trade.
Gitanshu
Attachment Converted: "f:\eudora\attach\1998.gif"
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