B bigspeculate Sep 28, 2012 #1 So what's the best way to go short vxx without losing your shirt when it explodes higher?
C cdcaveman Sep 28, 2012 #2 Quote from bigspeculate: So what's the best way to go short vxx without losing your shirt when it explodes higher? More... puts are always undervalued.. theres the money answer.. limited risk buy puts on jumps up in the vix
Quote from bigspeculate: So what's the best way to go short vxx without losing your shirt when it explodes higher? More... puts are always undervalued.. theres the money answer.. limited risk buy puts on jumps up in the vix
B bigspeculate Sep 28, 2012 #3 Why are the puts always undervalued? Who would short these puts if they usually expire in the money?
C cdcaveman Sep 28, 2012 #4 Quote from bigspeculate: Why are the puts always undervalued? Who would short these puts if they usually expire in the money? More... exactly they expire in the money.. i was saying buy the under valued puts.. don't short them!!!! best on spikes in the vix...
Quote from bigspeculate: Why are the puts always undervalued? Who would short these puts if they usually expire in the money? More... exactly they expire in the money.. i was saying buy the under valued puts.. don't short them!!!! best on spikes in the vix...
C cdcaveman Sep 28, 2012 #5 Quote from bigspeculate: Why are the puts always undervalued? Who would short these puts if they usually expire in the money? More... shorting put = selling a put long a put = buying a put... to get short in the underlying in a limited risk way.. you just buy a put! they aren't priced alot of times because of the excessive roll cost of the ETF thats hard to price into the options..
Quote from bigspeculate: Why are the puts always undervalued? Who would short these puts if they usually expire in the money? More... shorting put = selling a put long a put = buying a put... to get short in the underlying in a limited risk way.. you just buy a put! they aren't priced alot of times because of the excessive roll cost of the ETF thats hard to price into the options..