lol, option edge? You mean the conversions trading against the futures? Sure, but you can't have a chicken w/o an egg... who's going to have any interest in the options if they can't even get a futures print to mark the options? Guys, it's dead. Move along. Nothing to see here.
we'll see as you are repeating my options leading point. anyway, i don't trade direction so don't call moi an optimist!
You don't trade direction, only ARBS! You seem to be expecting the options to bail it out, yet the OVX options will be a poor corollary. They had substantial volume in the VIX futures before they rolled out the options. IOW, the options won't be successful if there is no trading in the futures. VIX was doing >20k per day when the VIX options were rolled out. They can't do anything but lead... all they will need is to trade a 3 lot to beat the futures OI.
Yea, you can't hedge the OVX options without the futures. Strangely, it's not hard to hedge the OVX *futures* with the actual crude options... so I don't know what's keeping the CME and CBOE from getting their act together and finding us some realistic markets on these things.
"CBOE to Launch Options on Volatility Indexes of Individual Stock and Crude Oil ETFs" http://ir.cboe.com/releasedetail.cfm?releaseid=557894
soooo is there any metric that actually can give some historical guidance to the the volatility of OIL like the VIX for spx? I've been trying to find some way to measure the volatility of CL today vs 2008. tia
OVX published by the CBOE and OIV published by the CME will give that going forward. If you want something looking back in time... you have sources like ivolatility, Bloomberg, OptionVue.
For the Google-impaired -- http://ir.cboe.com/releasedetail.cfm?releaseid=493715 -- <i>For a complete overview of the CBOE Crude Oil Volatility Index... historical prices dating back to May 10, 2007, visit www.cboe.com/OilVIX.</i>
CBOE gold vix futures started trading today, and alas... they also suck. Current market being quoted for the front month contract is 17.75/19.25, so the spread is even wider than the CME version. (And also interesting that the CBOE gold vix comes in a few points higher than CME... but I doubt there's anything that can be arb'ed there.)