I started dabbling in options sometime after July this year. As such, I missed out on the fun of the GFC period where vols reached historic highs. Can the seasoned traders here who lived through the GFC care to share their war stories during this unique period? For example, was it highly profitable? What were your bread and butter strategies during such high IV scenarios? Or did you stay out of the market altogether?
What happened to index options at that period? Was IV always higher than HV or were there periods when HV exceed IV?
I can only imagine that during the periods when IV was much higher than HV, and therefore option sellers had a field day. Did short vega spreads like butterfly and low prob ICs fail miserably as IV's climbed higher by the day? Please do tell.
And lastly, as an option trader, do you yearn for those days again?