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re: Trading volatility VIX
Posted on 6/23/14 at 10:39 am to Iowa Golfer
Posted on 6/23/14 at 10:39 am to Iowa Golfer
interesting.. I'm open to either or, trading or hedging. looking at the VIX calls, how far out would you look? and how come they're isn't any DITM calls?
1
Posted on 6/23/14 at 12:04 pm to b-rab2
All sorts of deep in the money calls. It depends how far out. What you are looking at is buying calls on the equity VIX index in your stock trading account.
They get expensive for reasons already stated. Dec $10 VIX are over $6. Dec. $10 VIX that you are talking about in your stock trading account.
If you are talking about buying options on the actual futures index, this is different.
You're not going to learn a lot from posts on here.
Keep it simple. If you're trying to buy insurance, go ahead and do some research on the VIX products that you can purchase in your stock trading account. Google using VIX calls versus using SPY and/or SPX puts as insurance. If you're making a volatility trade buy a call option on the VIX futures, not an equity option. You're still limited to the cost of the call plums fees, but it tracks better. And it corrects downward in a hurry.
Seriously, you should do a ton of research before you do anything but buy calls or puts. At least that way you know your maximum loss going in. You should really practice trade for a while.
They get expensive for reasons already stated. Dec $10 VIX are over $6. Dec. $10 VIX that you are talking about in your stock trading account.
If you are talking about buying options on the actual futures index, this is different.
You're not going to learn a lot from posts on here.
Keep it simple. If you're trying to buy insurance, go ahead and do some research on the VIX products that you can purchase in your stock trading account. Google using VIX calls versus using SPY and/or SPX puts as insurance. If you're making a volatility trade buy a call option on the VIX futures, not an equity option. You're still limited to the cost of the call plums fees, but it tracks better. And it corrects downward in a hurry.
Seriously, you should do a ton of research before you do anything but buy calls or puts. At least that way you know your maximum loss going in. You should really practice trade for a while.
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