MILESCFA

Collapsing Volatility: ETF Opportunity

ChrisMck - if volatility been 25% back on 3/9 then the call would have sold for $45 rather than $75 (an approx. 36% drop in value due to the change in volatility)...

but the caveat is that you typically don't want to be buying options when volatility is really high (unless you expect higher volatility).

I went long out-the-money vertical call spreads using LEAPS around the March low and discovered one thing missing in MOST option articles - liquidity. My LEAP trades were fairly illiquid and I have to "give in" when trying to close them. Several of the ETFs in the list above have options that "trade by appointment", so ALWAYS be aware of option liquidity.