It's all about the Hamiltons, baby...
http://en.wikipedia.org/wiki/Lazy_Sunday
Holy Geebus! 19% on VIX!
riskarb's trading journal
- Thread starter riskarb
- Start date
- Status
It's all about the Hamiltons, baby...
http://en.wikipedia.org/wiki/Lazy_Sunday
Holy Geebus! 19% on VIX!
Glad I bought some VIX AUG 15 Calls 
as a directional bet!
as a directional bet!Ahh, front month puts better Die SPX die.
Die SPX die.Quote from optioncoach:
Glad I bought some VIX AUG 15 Calls
Can you guys elaborate pls. Thanks !
I'm just a broken clock that happens to be right twice a day
There is large ambiguity over correlation of IV/VIX and SPX price action in general. Anecdotal evidence suggests that there is more of a correlation between IV and SPX price "bands". Modelling volatility of IV or vvol as it is sometimes known is very difficult if not impossible: suffice it to say that it is in general not a good proxy for direction on the underlying.
If used to catch large spikes as insurance then that is a different matter and I'm sure that was Phil's intention rather than pure directional speculation. We are in a different environment compared to the last few months with respect to volatility.
All of the above further ignores the multiple ambiguities surrounding the pricing of VIX options :eek: versus the relative transparency of index puts. There is no right or wrong here just expression of personal style and circumstances.
MoMoney.
There is large ambiguity over correlation of IV/VIX and SPX price action in general. Anecdotal evidence suggests that there is more of a correlation between IV and SPX price "bands". Modelling volatility of IV or vvol as it is sometimes known is very difficult if not impossible: suffice it to say that it is in general not a good proxy for direction on the underlying.
If used to catch large spikes as insurance then that is a different matter and I'm sure that was Phil's intention rather than pure directional speculation. We are in a different environment compared to the last few months with respect to volatility.
All of the above further ignores the multiple ambiguities surrounding the pricing of VIX options :eek: versus the relative transparency of index puts. There is no right or wrong here just expression of personal style and circumstances.
MoMoney.
- Status