anyone trade VIX options?
what is your strategy? etc.
what is your strategy? etc.
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anyone trade VIX options?
- Thread starter increasenow
- Start date
VIX options are European settlement meaning it can trade below its intrinsic value and can only be exercised at expiration. Here's a link to the VIX options guide at the CBOE.
http://www.cboe.com/micro/vix/VIXoptionsQRG.pdf
forgot one thing, i wouldn't trade them. The vix is best used as a good indicator for tradable market moves.
http://www.cboe.com/micro/vix/VIXoptionsQRG.pdf
forgot one thing, i wouldn't trade them. The vix is best used as a good indicator for tradable market moves.
Quote from increasenow:
why not?also...I dod not care about exercising them...just trading to profit...they seem very liquid also...
My apologies, didn't see that.
Just remember trade VIX options and you're trading a derivative on a derivative on an estimate of a derivative. The VIX itself is merely a statistically calculated estimate of a theoretical SPX option with 30 days until expiration.
thanks...so anyone here trade them and make $$$$?
Quote from increasenow:
anyone trade VIX options?
what is your strategy? etc.
VIX options do not behave as you may expect them to behave.
They often trade under parity.
These options are too sophisticated for most traders I suggest you find something eslse to trade. If you don't like that advice, then be certain you understand every aspect of why these options are so different and why they don't move higher and lower when you think they should.
Good luck
Mark
http://blog.mdwoptions.com/options_for_rookies/
Quote from dagnyt:
VIX options do not behave as you may expect them to behave.
They often trade under parity.
These options are too sophisticated for most traders I suggest you find something eslse to trade. If you don't like that advice, then be certain you understand every aspect of why these options are so different and why they don't move higher and lower when you think they should.
Good luck
Mark
http://blog.mdwoptions.com/options_for_rookies/
They dont trade under parity, they trade under what people precieve as parity for other types of options. Rest assured they dont trade under their correct parity