Scott Sheridan

One of the approaches that I am taking right now, because I do want market exposure, I do want to buy some of these stocks that have been beat up, some of the big names. So for anybody that has traded options, you will understand this. If you haven't, it's going to probably be a little complicated, but volatility has exploded. Obviously, we're doing this now instead of little chops.

One of the approaches that I am taking right now, because I do want market exposure, I do want to buy some of these stocks that have been beat up, some of the big names. So for anybody that has traded options, you will understand this. If you haven't, it's going to probably be a little complicated, but volatility has exploded. Obviously, we're doing this now instead of little chops.

So what happens when volatility explodes? Market makers, the firms that are making the markets for all these options, they go, wait a minute, I got to get paid for the risk I'm taking because there's so much more volatility now. So the prices, the options go up. Because they pump volatility into the options. What does that mean? Well, in simple terms, a put gives somebody the right to sell.

So what happens when volatility explodes? Market makers, the firms that are making the markets for all these options, they go, wait a minute, I got to get paid for the risk I'm taking because there's so much more volatility now. So the prices, the options go up. Because they pump volatility into the options. What does that mean? Well, in simple terms, a put gives somebody the right to sell.

So what happens when volatility explodes? Market makers, the firms that are making the markets for all these options, they go, wait a minute, I got to get paid for the risk I'm taking because there's so much more volatility now. So the prices, the options go up. Because they pump volatility into the options. What does that mean? Well, in simple terms, a put gives somebody the right to sell.

One put gives somebody the right to sell 100 shares of stock at a particular price at a particular point in time. If you sell that put, rather than buying it, if you sell the put, you now have the obligation to buy 100 shares of stock at that price within the next, whatever your period of time is, you know, 45 days, 37 days, whatever it is.

One put gives somebody the right to sell 100 shares of stock at a particular price at a particular point in time. If you sell that put, rather than buying it, if you sell the put, you now have the obligation to buy 100 shares of stock at that price within the next, whatever your period of time is, you know, 45 days, 37 days, whatever it is.

One put gives somebody the right to sell 100 shares of stock at a particular price at a particular point in time. If you sell that put, rather than buying it, if you sell the put, you now have the obligation to buy 100 shares of stock at that price within the next, whatever your period of time is, you know, 45 days, 37 days, whatever it is.

So because volatility has gotten pumped up so much, I have not gone out and bought the stocks. Because in my mind, I'm like, I don't know if they're going higher, they're going lower. I don't need to own the stocks right now, but I'm okay owning the stocks right now. So I'm selling puts below the market and getting paid. I am selling somebody else insurance. That's the way I explain it.

So because volatility has gotten pumped up so much, I have not gone out and bought the stocks. Because in my mind, I'm like, I don't know if they're going higher, they're going lower. I don't need to own the stocks right now, but I'm okay owning the stocks right now. So I'm selling puts below the market and getting paid. I am selling somebody else insurance. That's the way I explain it.

So because volatility has gotten pumped up so much, I have not gone out and bought the stocks. Because in my mind, I'm like, I don't know if they're going higher, they're going lower. I don't need to own the stocks right now, but I'm okay owning the stocks right now. So I'm selling puts below the market and getting paid. I am selling somebody else insurance. That's the way I explain it.

I'm the insurance company. And what I think I'm doing right now is I am selling flood insurance after the flood. That's the easiest way to do it. If somebody's ever tried to buy flood insurance, if you live in a zone that just got flooded, you're going, you either can't get it or it's prohibitively expensive and you're not going to pay whatever they're asking for it. Right.

I'm the insurance company. And what I think I'm doing right now is I am selling flood insurance after the flood. That's the easiest way to do it. If somebody's ever tried to buy flood insurance, if you live in a zone that just got flooded, you're going, you either can't get it or it's prohibitively expensive and you're not going to pay whatever they're asking for it. Right.

I'm the insurance company. And what I think I'm doing right now is I am selling flood insurance after the flood. That's the easiest way to do it. If somebody's ever tried to buy flood insurance, if you live in a zone that just got flooded, you're going, you either can't get it or it's prohibitively expensive and you're not going to pay whatever they're asking for it. Right.

When option volatility gets into, historically we're in the upper teens, but for years we were in the low teens. We have just gone through a period, we were basically locked in the 25 to 30 range for a while. Now we're back in the 20 range. But imagine what that does to the premiums. So now, again... I'm selling flood insurance to somebody who just had a flood. I'll take my chances.

When option volatility gets into, historically we're in the upper teens, but for years we were in the low teens. We have just gone through a period, we were basically locked in the 25 to 30 range for a while. Now we're back in the 20 range. But imagine what that does to the premiums. So now, again... I'm selling flood insurance to somebody who just had a flood. I'll take my chances.

When option volatility gets into, historically we're in the upper teens, but for years we were in the low teens. We have just gone through a period, we were basically locked in the 25 to 30 range for a while. Now we're back in the 20 range. But imagine what that does to the premiums. So now, again... I'm selling flood insurance to somebody who just had a flood. I'll take my chances.

And I'm going to say, you know what? I'm comfortable buying Apple at whatever price or Google at whatever price. So I'm not doing right at the money. I'm going out of the money. So I'm giving myself a little bit of room. And for me, these are stocks that I'm comfortable owning and I'd love to own down at those prices.

And I'm going to say, you know what? I'm comfortable buying Apple at whatever price or Google at whatever price. So I'm not doing right at the money. I'm going out of the money. So I'm giving myself a little bit of room. And for me, these are stocks that I'm comfortable owning and I'd love to own down at those prices.

And I'm going to say, you know what? I'm comfortable buying Apple at whatever price or Google at whatever price. So I'm not doing right at the money. I'm going out of the money. So I'm giving myself a little bit of room. And for me, these are stocks that I'm comfortable owning and I'd love to own down at those prices.