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in 2009 and 2010 I recall that Alpha and Pro both played naked calls when volatility rocketed. I got in on that and made some handsome profits, though they reminded me of Neo standing on the ledge in "The Matrix": except that I succesfully least 3 times.

Now volatility is sooooo low, and we have all seen the discussion about how low volatility is. I expect that when FEAR raises up its ugly head, like always, it happens without warning. In order to capitalize on this, I figure holding long calls on VXX might be attractive, possibly futures contracts.

Then when volitality pops, close the long calls taking profits and sell naked calls.

So this would entail laying the low cost trap now. The downside is volatility (FEAR) doesn't occur during the option period, and they expire worthless. Plus, the longer the option period, the more expensive they will be to buy...

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