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Thanks Robert. I guess I'm not understanding your first questions. My understanding is that a VIX call option with a strike price of 20 will, on settlement, pay you the amount VIX exceeds $20 (times $100). What do you mean by "initiated by the buyer" versus "seller"? I bought it, so I hold...

I have a large number of June 20 calls on the VIX (which i bought when the VIX was in the low 9s, to offset potential losses in the XIV I hold when the VIX ultimately popped). Late last week or so the VIX took a POUNDING (to the upside) - from in the 11s to not that short of 20 now. My XIV...

Thanks Robert! So is another way to say is that the VRO is the price upon which the VIX options will be settled? I.E. if the VRO settlement value is 11.42, and I have a VIX call with an 11 strike price, I'll receive $42? How do we know what VIX options the VRO is referring to? Is it always...

Thanks so much Robert and others. Sorry for the late reply. Curious - what exactly is VRO? Per yahoo finance it is 11.42 currently, while VIX is at 11.00. I get that the VIX options will be priced more based on VIX futures rather than VIX spot price. Just so long as at the closing I will...

I just want to make sure I understand how these work. So lets say a January 2018 call option is quoted at $1.30. If I buy one, I think the cost is really $130. That is out the window, so to say. If on the January 2018 expiration date VIX is at or below 20, I get nothing (and lose $130). But...

I see cdcaveman. Thanks!

Ohhhh, I see. There is no VIX underlying, so the analysis is somewhat flawed. I guess you could use the VXX underlying, but given its slow decline that probably makes these options prices make sense. Thanks cdcaveman!

So, I go here: http://www.marketwatch.com/investing/index/vix/options Look at the January 17, 2018 expiration puts. Let's pick one. Say the put with a strike price of 40. Bid is currently 24.7, ask is 25. Let's say I buy one for the ask, $25. VIX at this time is $9.40. So I pay $25, I...

Thanks so much dunleggin, I really appreciate it! I'll need to read it through a few times to fully understand it haha. :) Thanks!

I could be wrong, but when I've always thought about options, when you purchase one call let's say, it was a right to purchase 100 shares at the strike price. How does this work with VIX? I know VIX are cash settled, but that is not my question. I note on this site that the VIX option...