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Don Fishback adds this comment on below.I'll toss

Posted on October 02, 2008

Don Fishback adds this comment on below.I'll toss a grenade into the debate. VOLATILITY IS THE WRONG THING TO LOOK AT! Not enough time to go into details here. But the bottom line is that you make money in options by guessing the magnitude of a stock's move over a fixed period of time. In the current hyper-choppy environment a person could buy a straddle and still lose money, even though volatility is rising. Remember, you get paid in dollars, not volatility points. And dollars are won and lost when the stock moves beyond your strategy's breakeven point.Focus on movement, not volatility!Don is...

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expiration , flip , options , trading , volatility