I bought VIX puts, come take a look!!!!!!!

Alright atticus, thanks a lot for the info. I appreciate it. I am just a young one looking for some action, what can I say lol!! Anyways, what I will do with this current position is I will put in a stop loss just in case it sinks down a lot. What position would you have put on in VIX, if you were using my mindset? Please give me specific strikes and months, so I can get a good idea. thanks!
 
Long the 16/20 put spread or perhaps the 12/16/20 fly from 2.00 risk. The basis cannot persist, so there is edge there. It can't be arbed, but you want to be short basis, not long.
 
Thanks atticus, I will definitely review those strategies. Good news is that I am only playing with $100s not $1000s right now haha.
 
Fortunately I understood the vix product itself, but i didn't know the index was directly correlated to the futures. Now I know! thanks.
 
hey failed trad3r can you please tell me more about XIV? Is it related to a specific futures product or is it its own product? I imagine if you are long calls in this, you have a bearish outlook on the VIX? thnx.
 
Quote from klurby:

Fortunately I understood the vix product itself, but i didn't know the index was directly correlated to the futures. Now I know! thanks.
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Right. That's what Atticus was alluding to when he pointed out that the 18 put and call were just a nickel apart with the futures at 18.05. Think put/call parity.
 
Thanks for the help dmo, I watched the video and I understand now. The vix futures are an idea of where the markets think the vix will be in that certain month. I also found this information.

VIX/N1: JULY 2011
VIX/Q1: AUGUST 2011
VIX/U1: SEPTEMBER 2011
VIX/V1: OCTOBER 2011
VIX/X1: NOVEMBER 2011
VIX/Z1: DECEMBER 2011
VIX/F2: JANUARY 2012
VIX/G2: FEBRUARY 2012
 
in the long run shorting the vix outperforms a lot of things but its kind of like martingaling

long XIV with risk capital is how i would do it
 
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