The best time to establish the trade is when implied volatility is at high levels, because shorting Vega is equivalent to selling volatility. While this won't guarantee a profit, it greatly improves your chances to profit. The more the underlying asset moves away from the given strike price, the more valuable the option. Thanks for your valuable time.
The best time to establish the trade is when implied volatility is at high levels, because shorting Vega is equivalent to selling volatility. While this won't guarantee a profit, it greatly improves your chances to profit. The more the underlying asset moves away from the given strike price, the more valuable the option. Thanks for your valuable time.
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