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Old 07-21-2002, 06:59 PM
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Default option trading...whats the catch????



Hello all,


So i was reading option trading and one study showed that it was possible to make 10% return per month on the CBOE by the simple following trading strategy: buy options when implied volatility is low and sell when implied volatilty is high. Implied volatility is mean reverting so if its low it will go up.


My question is: is it so easy to profit from options trading? The 10% montly return is huge!!!! Or is there a catch here???



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