Options Buying vs. Options Selling in
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Volatility as a Double-Edged Sword
When the VIX spikes, options premiums inflate rapidly. This creates challenges and opportunities for both options buyers and writers. The quantitative desk at SP RESEARCHVIA PVT. LTD. explains how to position your trades.
Should you buy or sell options when volatility is high?
Buying options in high VIX environments is risky due to high premium costs and impending IV crush. Option selling provides a statistical edge, but selling naked contracts exposes you to unlimited risk. Spreads are highly recommended.
Hedging Volatility Shifts
Using spreads like Iron Condors, Credit Spreads, or Calendar Spreads helps define your maximum risk while allowing you to capture high implied volatility premiums without risking catastrophic losses.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.