buying VIX calls here

CyJackX said:
For anybody who doesn't actually know what the fuss is about here with the vets chuckling at this guy, VIX is quite peculiar because it is not traded on its index directly. All options and ETFs are derived from VIX futures. It doesn't matter what the VIX is now, it matters what the forward contract is doing, and what price that contract is likely to settle at. As they've mentioned, VIX is currently 16-17, while the index is 11. Everybody between now and March is already anticipating a little bit more volatility once the year starts. And since VIX mean-reverts downwards, OP likely is just going to piss away time premium, and possibly even intrinsic, since his call is ITM. The March contract has to get close to closing above 17 to get profitable, and a spike too early won't do it, since the VIX will just revert down, and the futures and options markets reflect this knowledge.
More...

Yeah but that is no fun to say... :)
 
I think the March VIX contract can easily hit the low 20's if we see a selloff in Jan as profits are booked into the next tax year.
 
El OchoCinco said:
My point is that if the futures VIX is bid enough to hold up I think the same will be true for the vols in the options which the VIX comes from. The more we really the bigger concern for a drop so vols wills stay bid and I do not see VIX getting below 10 by next week with such light volume. The curve sometimes can guide you on VIX though rarely the other way around.
More...

Well... I'm bid... I just bought SPI (australia) dec-29 options at IV of 5.....

That's pretty much the lowest I've ever seen options trade (even in Index options) and I've been doing this shit for a while...
 
OP really? No Never Traded The VIX before, But I trade Everything That Moves, And I trade It Good, So If You Have A Laugh, Well I may Have The Laugh, Because I out Trade Every Human, And I am No Robo!
 
grizzlybull said:
There Is A Difference in index futures calls and index calls, I think you guys need to get the clue.
More...

Huh? There are no "index futures calls". There are only index calls. The index calls use the futures to derive the forward price in which options can be priced from. And at expiration they "converge". You sir, are trading index calls and you sir bought that index at 17. Good luck.
 
grizzlybull said:
There Is A Difference in index futures calls and index calls, I think you guys need to get the clue.
More...

There is also a difference between intelligence and ignorance about a subject...and funny how everyone here pointing out your wrong but you know better....
 
JackRab said:
Exactly! @grizzlybull you did buy those calls for about $6 didn't you? If you bought them at all...
What's the equivalent put value you think??
More...
I Dont Care I Don't need that instrument, I trade and make enough on the Futures, I was getting Greedy, i will Sell those calls for a profit, and keep doing this.
Capturelotsoftrades.JPG
 
You must log in or register to reply here.
Back
Top