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> >> This will obviously put implied vols out of the ballpark.
>
> >So why not sell deep ITM puts.
I'm really referring to buying calls vs selling puts.
> b/ Account is not big enough to short index premium naked.
Mine isn't either so I'd sell puts on stocks I watch if, and that's a big
IF, I can find a sector that I think may be oversold and rebounding. I'll
probably be watching the fiber optic sector since I expect them to be down
initially but I'm not sure they should be hurt along with the semi's.
> c/ Lesser risk higher reward opportunities elsewhere are plentiful.
I'm not sure if selling puts is less risky than buying calls in this
situation. Maybe it's just how I view things. If I buy calls then I'm trying
to pick a bottom and fight deflating implied volatility. If I sell puts I'm
just trying to pick a bottom and volatility is on my side. But I understand
your position and think we're talking about different time frames.
Be careful. I guess wrong more often than I guess right but I know how to
cut my losses quickly and I'm looking at this as a quick daytrade.
Regards
John Manasco
Disclosure: If you follow my recommendations you're an idiot and everyone
will laugh at you for being one!
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