I was going to possible dip my toes in a long VIX futures position if it drops low enough but I just found out my broker (SCHWAB) astonishingly doesn't traffic in VIX options. I guess they would rather have me naked, lol. So if I can't go long one VIX futures and sell 10 VIX ATM options, is there something else I can sell to collect some call income and modestly hedge?
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Alternative to a VIX futures covered call
- Thread starter dcwriter2
- Start date
Synthetic long = Buy call, sell putSynthetic long.
Synthetic short = sell call, buy put
I must have been vague, but my broker does not allow VIX options, just VIX futures. If I am long the futures, how can I get a risk/reward profile similar to selling 10 VIX calls on that long VIX futures contract?
You can sell VXX calls if you trade the front VIX
Buy 100 uvxy and write a call ?........I must have been vague, but my broker does not allow VIX options, just VIX futures. If I am long the futures, how can I get a risk/reward profile similar to selling 10 VIX calls on that long VIX futures contract?
Uvxy is an example use any optional vix etf.
But if you like beer you are far better using it as a drink money than intentionally losing it.....
I am very surprised to hear Schwab doesn't offer trading in VIX options. Are you sure you have the right symbol? The right permissions?
Yeah, I was surprised, too. and I called them and they confirmed that so far they just don't like the risk profile of the product, although it may be an exchange issue or some clearing issue, or even SPAN, I suspect. I have portfolio margin, futures options permissions, SPAN (obviously), etc on that (mon-retirement account) account.
I am very surprised to hear Schwab doesn't offer trading in VIX options. Are you sure you have the right symbol? The right permissions?
Just an additional follow up on the VIX options. I thought it was especially odd of Schwab because they have been, on another regular trade, great, better than IB or Merrill, in locating shares of UVXY for me to short.