atticus' "ship it" vol trading journal

Small Jan (journal) and Feb flies.

 

that macro volatility would help

 

+ BOT 2 VIX NOV 20 '12 - (2) 18 + (1) 20 + (1) 14 Put Combo -0.25 USD SMART 14:34:08 OptTrader 9.27 null

400 margin req.. if vix blows up and closes above my short strike thats the worst it can hurt me.. thought this was a good way for me to go short nov vol...

 

can I ask what your thesis is? or do you just believe pricing is in your favor?

 

my thesis is.. its a limited risk way to be short vol in the vix futures for nov.. time goes buy and vix doesn't jump up above 20 it puts good cards in my hand.. if vol spikes up to a billion its not game over.. its more about the limited risk and my view of what will happen.. i don't like being wrong and losing my ass ... if i'm short vol in the vix , and long vol in single names i get more neutral..

+BOT 1 GOOG OCT 26 '12 - (2) 665 + (1) 675 + (1) 650 Put Combo 1.05 USD SMART 15:59:42 OptTrader 2.17 null

 

did you sell 2 18 puts and buy a 14 and 20? or am i reading it wrong?

 

yeah... sometimes IB doesn't order it where it makes intuitive sense by yea its a broken put fly... +20/-18/+14 in a 1/2/1 quantity..

 

I like split strike flys on the downside,but the butterflys above 110% of spot are really cheap...

5 point flys trading for under .50??

 

actually... i make money if vix stays above 15... basically if this rise in the vix comes back down.. i need to sell it before it gets below 16..

 

Why not just buy vix puts or outspread instead of the fly. 2 options instead of 4 and of we sell off which is your view, you can monetize immediately.

You might find the vix future at 16 tomorrow and you not up much money.