This article was pretty interesting not that I think you should really make any investment decisions based on it. We are taking advantage of the reduction in volatility by buying back some of our sold options which we have already made most of the profits on. The hope would be that any increase in volatility or drop in prices of stocks that we want to buy could create better risk adjusted returns. In our opinion the volume argument is somewhat misguided in that in recent years a tremendous amount of volume has been generated through the high frequency trading programs. Many of these programs are getting shut down or downsized as the regulatory picture has been changing for the banks. I do think there are a lot of investors that haven’t participated in this rally as it hasn’t provided many pullbacks if you weren’t in the market already.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.