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1. Do VIX options close to the VIX cash value, or the VIX futures value? 2. This scenario only works out if you can actually buy the VIX- when you compare the vix option prices to vix futures, it's quite an awful trade. In general, I want to stay out of futures, as they also expire, which...

If I were able to actually buy the VIX, the January $10 call would give me the most downside protection. The VIX could go up any mount, and I keep my premium, and the VIX could go down almost $10 before I lose any money.

I think by explaining my initial thought, you'll see better what my intent was with this trade, although I'm pretty sure there is no clear cut way to capitalize on it without being able to directly trade the VIX cash value. You can sell the VIX Jan 2011 $10.00 call for $13.70. At today's...

With VXX and VXZ being different prices from the VIX, how many shares do you buy and how many calls do you write? I think if I were to do it, I would sell deep in the money VIX calls.

Are you talking about VXX and VXZ? And how would you structure the trade?

The feel you're referring to is that if my position goes sour in a covered call, I can ride it out, as there is no expiration on how long I can hold a stock. For VIX this is obviously not an option, as futures will also have an expiration. Also, the type of trade I am trying to figure out is...

2. On a covered call, my loss is limited to the amount I paid for the underlying shares. To me, that is less risky. 3. I clearly understand the VIX is not tradable, and is not the underlying for anything. 4. Why do you think I am here? I've never traded futures, and have no plans to trade...

Someone let me know if I'm wrong here, but the VIX mini futures trade at 100 x VIX, so one mini future contract would be around $2000 currently? Then I would sell one VIX call option. Does that sound about right for getting as close to a covered call for this?

Being short a put is too high or risk for me. Basically, I want to be as close to possible as holding the underlying security in this trade. With VIX, that is a little more difficult because I cannot outright buy it.

Can you tell me exactly how the VIX options are settled? My goal is to take advantage of the high premium on some of the vix calls. Depending on exactly how they work, this may or may not actually be a possibility.

If somebody wanted to essentially trade a "VIX covered call", what would be the best way going about this. I know VIX has listed options, but you cannot trade the VIX itself. I know there are 2 different futures and the VXX. Is anyone here experienced in Volatility trades and has insight for me?

Anyone have any suggestions for strangle plays on FDA approvals coming up? I know Salix is coming up. Any others, especially ones people think are gonna pop big like intermune.

Yes, I know of the events.

Danshirley, That is the kind of annualized return I'm hoping for. Nothing drastic, just another way to make income each month. I will follow the stocks you currently put bull spreads on. Thank you.

MDVN is pretty scary. I'm hoping that some of that risk can be diversified.

Kedwards, I am taking very careful consideration of any announcement dates coming up. In most situations, a pending announcement date is the only way I can get a decent credit on the puts. That being said, I believe ITMN's news will be positive. If not, I still do not believe bad news about...

I'm not looking to get rich quick. Basically, I've been building a stock portfolio over the last two years, and I believe right now is a silly time to buy. I think most stocks have little growth room currently, and I also am worried about a double dip. I built most of my portfolio right after...

Basically I don't. My first trade was ITMN. I sold 7.50 puts for .55 and bought 5 puts at .15. There's considerable downside risk, but my goal is to pick trades where the stock would almost have to lose 50% of its value in order for my options to be in the money.

Way out of the money for income. Anywhere from 15 days to six weeks til expirtion.

Anyone here trade bull put spreads? I'm new to it. I virtual traded for awhile on a practice account and am about to get into it with real money, albeit very small amounts to begin with. Any successes or failures?