Hmmmmm...definetely food for thought right now as everything seems to be whipsawing quite violently...
If I was better funded (deep pockets) I might consider selling some options soon to take advantage of the extreme volatility...
It is safer though to buy an option before the volatilty increase...in anticipation of the increase...and then sell that position into the higher volatility...
thereby not having the direct exposure to naked options selling.. 'cause it can always get MORE volatile...lol....and having unprotected unlimited exposure
thru selling options would keep me awake at nights...
Spreads are the best answer maybe to this problem...if you are going to sell options do it with spreads...to limit risk...
My favorite trade will likely remain watching for a setup in a low volatilty quiet market that appears to be preparing for a breakout, (and thereby an increase in volatility,) so then buying the option at the point of the breakout, letting volatility increase and selling into the premium increase...WITHOUT holding out for hopes of a moonshot, lol....this type of trading can work well over and over again....
But market conditions have to be right, you have to be patient, and right now market conditions are not exactly condusive to this type of trading...hehe... so maybe until things quiet down again (at least reletively) just a quick trade on a strong divergence here or there will have to do...