Remember that statistical volatility “surge” on Monday? All gone, although I would suggest Noise has overtaken any real volatility move over the past week. Everything still trades on the cheap end. And generally speaking, it pays to wait for “real” volatility to pick up bofore making much of a commitment to it.

Never forget that time is truly money as options are a decaying asset. So while averaging in can make perfect sense in a stock, it may prove disastrous in an option.

OK, all that said, there is some hope around. This FSLR gapped down 10 yesterday and closed down 20 on some *news* that the Germans were going to cut subsidies. And then gapped back up 20 today when we find out it was just a bit of Teutonic humor, and the subsidies won’t get cut so much after all.

When you look at the options board you may see the June strangle bracketing the money trade for like $25 and consider it kind of high. But believe it or not, that represents a 55 volatility, as cheap as FSLR has traded in 10 month’s.