Augustus

Profiting from Risk Aversion

In the present situation, considering that the market has been hammered nearly 50% from highs, the trade may be to sell puts on the individual companies and buy puts on the index. With the extreme levels of IV on the individual stocks the IV arbitrage should be pretty good. I would want to select more than 20 names for the trade. Possibly something with the Naz 100 sould be better to deal with as there are fewer names in the index.