Is this right regarding VIX futures?

Discussion in 'Financial Futures' started by Saltynuts, Feb 13, 2018.

  1. I bought 1 March contract for $20.5. Let's say VIX closes at the relevant time on the expiration date at $25. I will get paid $25,000 into my account (based on the VIX future 1,000 multiplier) at that time. So my profit from the purchase (ignoring commission costs) would be $4,500.

    Conversely, if VIX is at $15 at the expiration, I will get $15,000 swept into my account, and my loss would be $5,500.

    Does that sound right?

  2. Robert Morse

    Robert Morse Sponsor

    P/L looks correct but I would have used different terminology.

  3. vanzandt


    Hey. And I'm not trying to troll ya.... but if you don't already know the definitive answer to that.... its probably not a good idea to consider the trade. Unless you're just in the mood to roll the dice.
    JackRab, jpmswiss and cvds16 like this.
  4. schweiz


    Not knowing the definition does not mean that he does not know how to trade it.
    I daytrade already many years the ES. So if I would ask information about options trading your conclusion is that I can only lose money as I don't know anything?
    I know nothing about the VIX too. So it would be a sign of intelligence that I would ask information. Better then trading things you don't know.

  5. LOL. So, since now I know the definitive answer to that, when can I consider the trade? 30 minutes from now? Tomorrow? A week from now? Next year?
  6. vanzandt


    After you buy an ET bumper-sticker.
    tommcginnis likes this.

  7. :)
  8. Robert, thanks for the help!