Friday, March 12, 2010

Volatility crush saved my trade on $CF

I wanted to give a quick note before I leave for East Lansing tonight.
I sold 95/90 put vertical on CF yesterday (selling puts meaning I was bullish on CF), but today it gapped down big on a news. However, I did not lose money on CF, instead I made money on CF. The volatility crush helped me today. The implied volatility of CF drops to a very low level. Option sometimes makes you money EVEN when you are wrong. If you want to learn options, the books by Jeff Augen are very good. Jeff Augen was also an engineer.  Support this website if you want to buy the book thru the link. Thanks.
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