Today, it is merely a game. Let me explain how it is played.
- Game begins with identifying the trend.
- Say, the trend is down.
- Volatility and IV is extremely high in that case.
- So you make up a FAKE rally and thus crushing on volatility.
- When that happens, options are priced at peanuts.
- Load up all your puts at rock bottom prices.
- Continue your descent and that doubles your investment in a day or two. How/why? Not only price is with you during the descent, but IV also works in your favor.
- Next is. Rinse/repeat until you have a fool proof way of playing this game and making money out of the casino.
By the way, this game works both ways. Just 2) above changes and accordingly the play.
And please, do NOT take my word for it. Go ahead and check or even monitor this for yourself and you'd know what i am talking about.
Good luck.