-----Original Message-----
From: Ricky
<...>
If I can imagine an Achilles heal of this methodology, it would be the
case that the underlying quickly goes to an expiration risk point and
parks itself there until expiration. For example, suppose GS had gone
to 150 on 5/13 and stayed there. How would one play the position
then?
Mc - if you trade long enough every scenario, including this one, happens.
The best I can say is that you have to learn to adapt. If an underlying gets
stuck and volatility drops then you eventually have to recognize it and
start selling premium into that stasis. There's no magic formula; you have
to do what you think works until it doesn't and then you have to be detached
enough emotionally to swallow your pride or ego and then do the opposite of
what you thought was going to work originally.
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