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Sam, I think there is just a better market for the stock - more buyers and sellers, driving the bid/ask close together. Not that big of a market for the options, thus a wider spread. Nothing funky with the math.

sounds like a money maker. for them/him.

Not I, but with a name like that, how can you have any doubts?

Its interesting to me that all these things are doing is selling some futures (or holding some futures). There is just a blend to have a 30-day maturity on average. I'm not sure I have a point, but I guess that its that I didn't figure that out until recently! Without knowing more, you might...

"And how do you think they will do that? They can't... since UVXY and all other VIX ETN's are based on 30 day forward vols, which means it needs to be a mix of 2 different futures... which usually are in contango... which causes your 'time decay'." Yea, its bizarre - its an ETF based on the...

See my post to JackRab - I think buying a proper # of VIX calls of the very nearest term would (assuming you did the math right and bought the proper #) cover you no matter how high you go. Maybe not if it goes to infinity, but even in a theoretical 2008 crash type scenario. As JackRab pointed...

Thanks a ton JackRab! I'm still thinking through your very informative post. But let me ask a simple question. Let's I have bought a VIX 40 call for the very nearest expiration date (I think one was today, so let's say Feb. 14th, which I think is the next one). VIX goes through the roof...

Hahaha thanks for that, cool stories! Double down, baybe!!!!

Hahaha, OK. You mistake me asking for thoughts as trying to give advice! I am doing anything BUT trying to give advice, trying to get it. Will do. :) Yep, I didn't think about the June 20 VIX calls being European style, meaning they wouldn't move nearly as much. Glad this thing happened -...

Thank you JackRab! Will think what you said through, mainly about the part where the VIX calls are not based on the VIX index, but instead the VIX forward vols (futures). I realize that is the case for determining the purchase price, as there is really no VIX underlying. But if I have a VIX 40...

Its almost like you read one or two lines into my post, then your ADD kicked in, and you spazzed out and decided you had to post something right away. I didn't just "underly" the risks, I posted thoughts as to how one might deal with them and potentially still make good money. Have anything...

Yep S20075, it and UVXY both are down like 99% since inception. They could definitely spike a bunch more though - they are up again after hours.

I don't think you realize the import of what I just said.

Or, this trade I was talking about - you purchase XIV or SVXY, so you are short volatility. To protect yourself from a total wipe-out (as pretty much occurred), you might have purchased a VIX call (probably good bit out of the money so you can make money over time from the overall position)...

ironchef, for example, you expect volatility to move up a good bit, so you go long volatility, but to protect yourself if it craters you buy a put on volatility. One of probably many examples.

Four, exactly four.

And S2007S, I can't short them all that often. Just rarely, and almost always when they are MUCH shy of 40 haha. Other people already know to short them when they spike.

interactivebrokers S2007s

No idea ajensen, good point. Maybe it all comes down to essentially just different ways to get to the same thing. Going to try and put some numbers to this.

I would think so - VIX goes from 8 to 24 (300%), I'd be eating that, but VIX goes from 20 to 60 (300%) I'd generally eat the run from 20 to 45 in my example, but be covered beyond that I would think. That's the goal anyways!