With volatility rising this week, I’ve been on the hunt for opportunities to “safely” sell some premium.
While there is no such thing as a sure bet in the markets, selling elevated premium in rangebound securities is one of the closest things we will find to that idea.
I was chatting with my partner Steve Strazza this morning and when I told him what I was looking for, he immediately responded: “Oh — you want $IWM. That is the very definition of sideways action.”
Sure enough, he’s right. And upon closer inspection of the options chains, there is some good premium offered for sale if we’re willing to go a little further out in time.