With QQQ IV high Is it a Buy?

QQQ IV is at 3 month highs and near highs for the year.  So naturally the many traders are thinking we should sell premium?  But does that make sense?  Take a look at 10 and 20 day HV compared to 30 day IV in QQQ:

chart_-_qqq_-_powershares_qqq_trust_series_1_etf_window_screenshot_0.png

LivevolX

Notice that while IV is high,  realized vol is even higher.  While I think there are some smart ways to sell,  I could make an arguement that to the active trader, that is buying and selling options through out the day the answer is to be long optoins not short.  Movement is exceeding IV right now.

The Lesson:

High vol brings more vol,  and high IV, especially in indexes, tends to mean lots of movement

The Trade:

I actually might like short butterflies here if one can manage gamma and scalp decay.

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