XJO 0.50% 8,118.8 s&p/asx 200

Shorting with Options (puts) is quite expensive at the moment as...

  1. 1,334 Posts.
    Shorting with Options (puts) is quite expensive at the moment as the price includes the market Volatility in the calculation.....This doesn't mean that much if the market actually falls, but if it goes up...you loose on the underlying price movement....PLUS the Volatility drop...double whammy!!!

    In reverse if you place a call option while the volatility is high and the underlying price goes up....the option price may actually drop of stay flat as one opposes the other....

    This LEVERAGE works extremely well if you understand it.

    100% plus returns on a 4% underlying price movement...

    A bit of subject...but yes...you can still short the market at the moment
 
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