The higher the volatility, typically the more room the market maker has to play w/ the spread, etc.
Also, often professionals buy when there's lower volatility, and sell when the volatility is higher!
Hope that helps!
2007-03-07 11:29:08
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answer #1
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answered by Yada Yada Yada 7
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I have read recently that a Wharton graduate who made millions during the Stockmarket bubble in US, saying that during volatility ther is more opportunity to make money. He insists that one should not trade with naked options.
But the rule of thumb is when Implied volatility is greater than Statistical volatility that is the time when the volatility is very high and it is better to keep away from trading.
2007-03-09 04:50:37
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answer #2
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answered by Mathew C 5
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Yes, without volatility there is no money to be made. Options require movement, otherwise the markets will stay flat until the options expire.
2007-03-07 10:50:26
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answer #3
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answered by Anonymous
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that's authentic. a super kind of people are confident that Barack Obama will impose a a techniques better capital beneficial properties tax on the markets. Capital beneficial properties taxes have traditionally been imposed retroactively because of the fact implementing one useful in the present day frequently reasons a super sell-off. A retroactive tax ability that further tax criminal accountability is tacked directly to anybody's tab, frequently by using some months to a pair of years. That way, no person is inspired to unload their securities because of the fact it won't help them decrease their losses. inspite of the undeniable fact that, on condition that Barack Obama has pledged to boost those capital beneficial properties taxes, investors will choose to get out as quickly as conceivable as quickly as apparently obvious that he will certainly win as a manner to decrease their losses. this would reason a super marketplace sell-off like the single we are seeing suited now.
2016-12-18 07:58:10
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answer #4
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answered by ? 4
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