We have recently discussed the importance of routinely considering the value of implied volatility in a historical perspective for each underlying before considering any of the various option positions potentially appropriate for trading a given underlying security, index, or ETF. Failure to consider this data represents a major cause of the failure of otherwise favorable option positions.

Mr. OppiE answered Nikhil Gupta's question of "I read about deep in the money covered calls. I want to know Can deep in the money covered calls strategy should also be performed on indexes inspite of stocks, should I buy index futures and sell deep in the money covered calls? " for free at Optiontradingpedia.com Answers!

Welcome back to the world of options. My reality exists in three dimensions and far more combinations of potential positions than does the one-dimensional world of the stock trader.

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