ok. vix can only be exercised on expiration day. you want to... buy 3 contracts sept 18 strike puts? sell 1 contract june 19 strike put? (vix currently at 18.16.)
if you are confident that the vix will move above or below the 16.50-21.30 range by the june expiration, it should be profitable. is that what you expected?
Yes, I am confident that the Vix can move under the lower BE or spike over the higher BE. In this case the small profit will be a good protection. I made dozens of tests on the Vix using single puts and selling vertical spreads. In "normal" times Vix always tends to go down. Also when it spikes over 30 or 40 then it comes down and opening single puts and vertical with 3-4 months of expiry time gave me a very good results. That until another 2008 will come The trade I was asking an opinion was something different while I think the Vix will go down (better) or up but it will not stay between the two BE. It it stays the loss is very low. Sorry for any mistake in my English. Thanks a lot from Italy!
GinT, I would just keep in mind that the VIX options are based on the S&P 500 futures contract, not the S&P 500 itself. You may get price movement in the S&P but the S&P futures may not move as much. Buona Fortuna, sbc
for me the holy grail is to make money no matter which way the market goes... I can't predict the future but I can manage my risk right now