Today's Rage: Selling Volatility 4/17/2011

In the Summer of 1987 bulls were so sure that equities were in a permanent new era of rising prices that selling naked puts became the rage.

And of course there was the big lie about always protecting your portfolio with "portfolio Insurance" which involved a formula of buying/selling stock index futures while buying/selling whatever.....today the rage is selling volatility.

There are so many people short volatility that it's an accident waiting to happen in those portfolios

I like TD Sequential TDSTs because they adjust so well to ongoing action. Every major move in VIX for the last few years started with a specific move through a TDST.

Most traders use criteria that doesn't work to go long volatility, and that's why volatility sellers are coining money.....I don't think it will go on forever