How to deal with VIX

Discussion in 'Options' started by EliteTraderNYC, Jan 4, 2013.

  1. Hey guys, assuming you are long some options spreads on individual stocks and the vix tanks, any idea to hedge out this type of risk?

    EliteTraderNYC
     
  2. nope. if you are long vol and vol comes in, you lose money.
     
  3. Sell options prior to the VIX tanking :)
     
  4. Perhaps I should consider buying VIX put options to hedge my position in long premium.
     
  5. You haven't stated what your position was but how
    Much of your pnl came from vega?
     
  6. +1
     
  7. 1245

    1245

    You can try selling a few extra calls. eg 10x12 vs 10x10. try back testing that.
     
  8. Its front month at the money so Vega is a lot.