Trading VIX as a CoveredCall possible? :-)

stepandfetchit said:
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!
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Thx, you already said this some posting before.
It's already clear: VIX cannot be traded, only its options can be traded. IMHO a funny scenario b/c since VIX exists then it should also be tradable. Never mind, it's not that important anymore.
And: I'm bound to equities (stocks, indexex, ETFs) and its options only, ie. no futures and also no experience with futures.
Thx.
 
It's tradeable.

Long synthetic, short call ->(reduced)-> short put.

You see cash at 22 but the things are marked to futures at 23. Fcking duh.

You don't search out some ETF doing a few lots per day. You gain nothing but edge loss trading the ETFs.

Don't be fcking stupid. This thread is an IQ test.
 
@destriero, if you feel ignored, not taken seriously, then it could be that your postings are always unclear,
so foggy, maybe by this you simply want say that you and your information is "so elitary", so "advanced"...
But IMO only a few understand it. You better should be concrete. In the above example you should give an example with numbers that everybody w/o doubt can easily verify. After all it's maths...
 
@thecoder, here you are. The relevant price matrix of synthetic long VIX for the Sep 21, 2022 series, along with the Sep and Oct futures. Futures are down 10 cents overnight. The Sep 21 vol is mid-curve (between Sep and Oct futures) as can be seen by the matrix of long synthetics from 20-25.

You can clearly see that:

1) The options are not marked to the cash index value.

2) You will pay 25.55 to buy VIX out to the Sep 21 date.

You can buy the synthetic at 25.55 and write say, a 26C against it, or simply short the 26P. You've now traded the covered call and you don't have to mindlessly search out shtty low-OI ETFs to trade like an idiot.

The other advice given in this thread is a cautionary take and you should all feel shame. Much, much shame.

2022-08-10_3-41-57.png
 
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