VIX is close to being undervalued: Cheap way to play it

[recession2016]

Got that backwards.

If something was undervalued why did it not immediately get bought and move to "fair value" {another bogus concept}. Some genius hasn't figured it out yet I suppose?

Price only moves when someone perceives value (a subjective concept) is higher or lower. Otherwise price is already at fair value/overvalued/undervalued/whatever.

value is subjective, a price of a good might be undervalued to some and overvalued to others and these different opinions are what make a market

 

[nitro]

I am long options. Is that the better way to play it?

Long options on the TVIX or the actual VIX futures?

In any case, being long volatility is a good idea here.

 

[noddyboy]

Long options on the TVIX or the actual VIX futures?

In any case, being long volatility is a good idea here.

I am long stock options and delta hedged

 

[nitro]

I am long stock options and delta hedged

Well I have no idea what your position is and what its correlation is to the overall market.

The position I suggested in this thread is very simple and pure. Since it is an inexpensive ETF, it is also a possibility for a retail trader that frequents ET to put 100 to 500 shares of it.

Those threads that say $1000 to 10,000 in a year. Here is a good place to start.

 

[IronFist]

Teach me which VIX tracking ETF indexes will work for this, you can't buy vix.

 

[1a2b3cppp]

Some of these symbols are interesting to me.

TVIX was $1,009 per share a while ago.

 

[Maverick74]

Some of these symbols are interesting to me.

TVIX was $1,009 per share a while ago.

It was NEVER that high. It's been reverse split about 10 times. This thing has barely ever traded above $10.

 

[Buy1Sell2]

VIX is a huge buy here.

 

[1a2b3cppp]

It was NEVER that high. It's been reverse split about 10 times. This thing has barely ever traded above $10.

But it's as if it were that high.

 

[Maverick74]

But it's as if it were that high.

Nope, it's entirely from the from the forward curve which has been very steep the last few years times the leverage. Just look at the VX futures for reference.