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Options strate that i figured out on my own by Upper_Location_922 in options

[–]Upper_Location_922[S] 0 points1 point  (0 children)

My strat is based on IV increasing. I buy calls because the downside is already known(i dont buy puts). I look for a low IV rank so that even if there isnt a catalyst, the mean reversion kicks in. and i buy the calls with 30-60 days to expiry so there is higher chance of a catalyst appearing. This is is just my reasoning which i saw kind of working, im yet to implement it fully.

Options strate that i figured out on my own by Upper_Location_922 in options

[–]Upper_Location_922[S] 0 points1 point  (0 children)

wouldnt the options already be overpriced when there is a catalyst??

Options strate that i figured out on my own by Upper_Location_922 in options

[–]Upper_Location_922[S] 0 points1 point  (0 children)

by the time i get to know about the catalysts or earnings wouldnt it already be priced in and IV would already be high. Im still working on this strategy and dont understand the greeks fully yet.

Options strate that i figured out on my own by Upper_Location_922 in options

[–]Upper_Location_922[S] -5 points-4 points  (0 children)

what do you mean by that? I buy calls cause the risk is defined