Recent content by ktrader

Good luck...what you have is an expensive lottery ticket!

Dude...those are the december options.

He must be talking about the dec 520' because they are the ones trading at .25 - .30

Feb 520 strikes..... are you selling or buying those calls?

I have no ES options quotes. Is anyone else experiencing this problem?

Keep in mind the market is discounting worse case scenarios with each passing day (total devastation, refineries totally wiped out, etc....) If it happens it is already priced in and if it doesn't happen then we get a little bounce back until the next event.

Mav...my question was more direct to you. You seem to have a good understanding options and must trade them for a living. Overtime have you been a net seller or net buyer of premium?

So Mav or Risk what is your answer to the original post that started this thread. Can you make a living selling options?

1993 VIX mean = 12.6 1994 VIX mean = 13.9 1995 VIX mean = 12.1 YTD VIX mean = 13.17 Everyone thinks the market needs to drop off to pump-up the vol. but when the mkt goes range bound. We need to break the range to the upside or downside if vols are ever going to get really juicy again...

True you said you cannot simulate it exaclty. I don't know how closely you have followed the VBI contract since its inception but ironcially I think using options probably mirrors the movement in the vix more closely than trading the VBI's.

First, you can certainly simulate trading volatility as measured by the VIX using S&P options. Read the cboe whitepaper on how the vix is calculated and you will understand why you can do this...VIX is derived from a strip of S&P options. Yes, you do have time decay to worry about but...

You can trade VIX futures or S&P options (ES, SPY,etc.). It really is a matter of choice and strategy. I trade ES Options and VIX futures to capture moves in the VIX.

jond83....I just fired the guy who cuts my grass. Normally, I would look for someone with a little better academic credentials but I am in a bind. Let me know if your interested.

Harold, What exactly are you thinking of trading? You mention futures options and while the pricing theory (greeks..etc) is pretty much the same between instruments. One thing you really need to also look at if you plan on trading futures options with a directional strategy is the liquidity...

vixpills...unfortunately, I do not have a solid calculation to translate the vega exposure of a spread in VIX futures in a way that would match the vega exposure of the options position. I keep thinking the calculation has to be like a $delta calculation one would use when doing intermarket...