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This is the Only scenario I am wondering about now. Yes, this I understand, which still is my question that I have not really understand fully yet. The total time value of the options were $1420 but, let us say I am buying the options back 1 day before expiration. So we don't get the full...

Yes, the scenario I only think about at this moment how it will work practically is if I Buy back the option (Assuming that the stock doesn't get called away) So if the stock is at $60 and we bought it for $50 dollar and we get a premium of $1420. Assuming that when buying back the option we...

Hello I have a question about covered calls. There is a question that keeps coming to me all the time. Looking at this picture that shows 3 scenarios. Let us assume that we sell the call options ATM. http://www.bilddump.se/bilder/20170401204424-195.252.32.111.png Let me take the scenario to...

I beleive that would be about: 11.54 + 2.34 = 13,88

Thanks Maverick, then I understand that it is not possible to buy the VIX on the spot. I think this was what I wondered about. Thanks!

Thanks for answer! Yes, I also saw that the future was priced at 13.85 while the VIX is at 11.54 and the premium is at 2.34. So it seems that the premium is priced in in that way then?

Yes I have googled this and wathing videos for sometime but never get a good example of what I wonder about. The simple question would be for me to get the first understanding? 1. Assume VIX is at price $15 now. In 20 days we reach expiration. 2. So now I like to buy a futures contract and...

I was reading the article there and could then find the above. I think I need to confirm this exactly. Is it true that exists CFDs exactly as it does for stock symbols where if VIX has a current spotprice at for example 11.54$. Then we can buy a CFD at this spotprice where the CFD will have a...

Hello, I have a beginner question for futures on the VIX. I have found the below example info. Pricing – Mini-VIX June VIX – VMM0 @ 26.90 = $2,690. Minimum price move = .05 or $5. +/- 1.00 price change = +/- $100. As I then understand if VIX moves up/down 1$, the futures contract will move...

Hello, I wonder if it exists CFDs for trading the VIX which means that if price goes up you earn and if price goes down you loose dollar for dollar. Like a CFD for a stock symbol? Thank you

That is interesting, I wondered that too if the broker just would charge the difference over the short CALL option strike and current stock price. It seems logical but perheps I will need to ask them. I could find the above text in the PDF. It seems interesting as it also seems to take not...

As I am Swedish, I am able to trade CFDs. Perheps someone on the forum can trade CFDs or anyone still can understand my question.

I use Interactive Brokers. They offer CFD and Options trading. I am a Swedish citizen so I should be able to trade CFDs. So I try to refer to my question again.

Yes, I think that was a perfect answer. I will just assume that the stock doesn't decline for the example. Sometimes it might go up, sometimes down. I think if a sold call is exercised and I don't own any shares, I would be in a short stock position and not long?

Hello, I have a question about covered call using CFDs instead of stock. I will try to give an example. Lets assume the account has $1000 in cash and the broker requires 10% in margin for the CFD. I use IB(interactive brokers) 1. Buy 1 CFD of XYZ for price $100 2. Sell 1 Call at strike 102...

I think I know about the scenarios. Next step should be to create exit scenarios and rolling the short side before its expiration if the trade still is interesting. I beleive only this was the question which I got confused of. I beleive the below statement is correct which would be the only...

(I know that volatility affects the price of the option. But let us put that aside because it is some other basics that is not clear) I think there is some basic/ thing I am not exactly sure of but I think is. What I try to see is approx. what the "maxrisk" is at the nearest expiration...

I am looking at this example and still can't figure out how the maxrisk is calculated: http://www.bilddump.se/bilder/20161228012755-195.252.32.111.png I use 2 different strikes with different expirations. When putting the cursor at strike 31 there is a maxloss of -76.74$. This should then be...

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That is interesting! I will try to experiment with what I have, perheps I can solve it by try different scenarios and compare it to TOS. I just try using same and different expirations to see what could be possible and learn something from that. Thanks Step for your help!