Whither UVXY options?
- Thread starter eleuthera
- Start date
I looked at UVXY1. I don't think it's the right one. The strike price is all wrong still at the $10, $11 etc. when the current price of underlying after the reverse split is at $3X. Everybody will be making a killing with these strike prices.
Anybody know why IB is not offering the option for UVXY? I have seen the option chain for UVXY with $3X strike on nasdaq.com. http://www.nasdaq.com/symbol/uvxy/option-chain
Anybody know why IB is not offering the option for UVXY? I have seen the option chain for UVXY with $3X strike on nasdaq.com. http://www.nasdaq.com/symbol/uvxy/option-chain
I don't think it is an IB thing. When I pull up UVXY on my system, all that I see is UVXY1 (and UVXY2, UVXY3 which are adjusted back month contracts from previous splits).
1 contract of the new UVXY1 is equal to 25 UVXY. I don't see anything quoted other then these.
The Nasdaq link you had lists standard UVXY, but no quoted market, just a market for the UVXY1.
1 contract of the new UVXY1 is equal to 25 UVXY. I don't see anything quoted other then these.
The Nasdaq link you had lists standard UVXY, but no quoted market, just a market for the UVXY1.
Robert Morse
Sponsor
My guess, because there is no OCC bulletin yet, is that they wanted to wait a day after the split to add regular strikes. https://www.theocc.com/webapps/info...ch.x=0&submit-search.y=0&submit-search=search
This is what OCC has to say about the new UVXY option:
CONTRACT ADJUSTMENT
Effective Date: July 17, 2017
Option Symbol: UVXY changes to UVXY1
Contract
Multiplier: 1
Strike Divisor: 1
New Multiplier: 100 (e.g., for premium or strike dollar extensions 1.00 will equal $100)
New Deliverable
Per Contract: 25 (New) ProShares Ultra VIX Short-Term Futures ETF (UVXY)
Shares
CUSIP: UVXY (New): 74347W163
PRICING
The underlying price for UVXY1 will be determined as follows:
UVXY1 = 0.25 (UVXY)
So according to this, the price of the UVXY1 is supposed to be $35 (for example) * 0.25 = $8.75? But the price from IB is still like before $0.XX? With the strike price just like before at $8.75 and etc., wouldn't people make a killing by Shorting the UVXY and then buying the UVXY1 call? I am really confused.
CONTRACT ADJUSTMENT
Effective Date: July 17, 2017
Option Symbol: UVXY changes to UVXY1
Contract
Multiplier: 1
Strike Divisor: 1
New Multiplier: 100 (e.g., for premium or strike dollar extensions 1.00 will equal $100)
New Deliverable
Per Contract: 25 (New) ProShares Ultra VIX Short-Term Futures ETF (UVXY)
Shares
CUSIP: UVXY (New): 74347W163
PRICING
The underlying price for UVXY1 will be determined as follows:
UVXY1 = 0.25 (UVXY)
So according to this, the price of the UVXY1 is supposed to be $35 (for example) * 0.25 = $8.75? But the price from IB is still like before $0.XX? With the strike price just like before at $8.75 and etc., wouldn't people make a killing by Shorting the UVXY and then buying the UVXY1 call? I am really confused.
You're right Bob, regular UVXY options are there today.