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For income, option selling conditions rarely better

For investors seeking income, now may be the time to consider systematic option-selling strategies such as a BuyWrite. Current market conditions in the US have rarely been better.

Market volatility in the US (measured by the VIX Index) has hovered around 25 since May 2020, as the stock market recovery got fully underway. When an option is sold, this elevated volatility (Implied Volatility) is reflected in elevated option prices, meaning income is enhanced during these periods. Implied Volatility is a forward-looking measure of expected future volatility.

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