Good news:
My scanner just found a replacement using UVIX with slightly less projected outcome, that's 'nuff for me...
Dump Truck! Short the f*cking put!
Jeez, there is no juice in the vol 3 handles under the market... imagine that you f*ck trash.
Trading VIX as a CoveredCall possible? :-)
- Thread starter earth_imperator
- Start date
Dump Truck! Short the f*cking put!
Jeez, there is no juice in the vol 3 handles under the market... imagine that you f*ck trash.
RE: collateral: This would not work?
I'm handicapped as follows: I've only a CashAcct. Many option combinations are not possible with a CashAcct (only "covered" trades are possible)... :-(
K.. Now I understand! Ouch! It seems that will severely handicap you in improving trading performance. -- Beware that covered calls on UVIX will blead you dry! Look at long term performance of UVXY (same as UVIX before 2018 but 1.5X leverage since). These products best used leaning short.
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Cash secured short puts are also available to peasants.
Just for fun: if CoveredCall (ie. LongStock + ShortCall) were possible with VIX then the following trade would be a lucrative one, IMO:
VIX DTE=162.45(2023-01-18-We) S=21.8900(2.82%) K=10.00 B=18.10 A=18.20 @BE=3.7453(-82.89%) @S0(PL=6.2547(167.00%) max=167.00% PLann=808.49% maxAnn=808.49%)
If one can short-sell it for 18.15 or so.
CostBasis = Spot - Premium = 21.89 - 18.15 = 3.74
If at expiration the Spot is the same as now, then 167% profit can be made.
Says my scanner...
Here's also the P/L diagram: https://optioncreator.com/st2zjbl
The following is 20-minutes or so delayed (old) data:
VIX DTE=162.45(2023-01-18-We) S=21.8900(2.82%) K=10.00 B=18.10 A=18.20 @BE=3.7453(-82.89%) @S0(PL=6.2547(167.00%) max=167.00% PLann=808.49% maxAnn=808.49%)
If one can short-sell it for 18.15 or so.
CostBasis = Spot - Premium = 21.89 - 18.15 = 3.74
If at expiration the Spot is the same as now, then 167% profit can be made.
Says my scanner...
Here's also the P/L diagram: https://optioncreator.com/st2zjbl
The following is 20-minutes or so delayed (old) data:
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For newbies like me: I think there is a typo in the above sentence: DTIM should be DITM, and means "Deep In-The-Money", ie. a deep ITM option.
IFF you were approximating a covered call, your underlying would be /VXF23 -- using the wrong underlying (next month) is overstating what would be possible by about $6 or so.Just for fun: if CoveredCall (ie. LongStock + ShortCall) were possible with VIX then the following trade would be a lucrative one, IMO:
VIX DTE=162.45(2023-01-18-We) S=21.8900(2.82%) K=10.00 B=18.10 A=18.20 @BE=3.7453(-82.89%) @S0(PL=6.2547(167.00%) max=167.00% PLann=808.49% maxAnn=808.49%)
If one can short-sell it for 18.15 or so.
CostBasis = Spot - Premium = 21.89 - 18.15 = 3.74
If at expiration the Spot is the same as now, then 167% profit can be made.
Says my scanner...
Here's also the P/L diagram: https://optioncreator.com/st2zjbl
The following is 20-minutes or so delayed (old) data:
View attachment 291573
FWIW: In case it may not be clear: VIX is the untradeable index, which is a computed value: see: "https://cdn.cboe.com/resources/futures/vixwhite.pdf". The tradeable options you are referencing actually relate to the /VX Futures (each expiration if from a unique /VX futures product). Note the expiration coincides with the expiration of the futures contracts!