It's all about the Hamiltons, baby... http://en.wikipedia.org/wiki/Lazy_Sunday Holy Geebus! 19% on VIX!
I agree, especially if you have access to ES options. Why people use the vix options for directional bets escapes me.
I'm just a broken clock that happens to be right twice a day There is large ambiguity over correlation of IV/VIX and SPX price action in general. Anecdotal evidence suggests that there is more of a correlation between IV and SPX price "bands". Modelling volatility of IV or vvol as it is sometimes known is very difficult if not impossible: suffice it to say that it is in general not a good proxy for direction on the underlying. If used to catch large spikes as insurance then that is a different matter and I'm sure that was Phil's intention rather than pure directional speculation. We are in a different environment compared to the last few months with respect to volatility. All of the above further ignores the multiple ambiguities surrounding the pricing of VIX options :eek: versus the relative transparency of index puts. There is no right or wrong here just expression of personal style and circumstances. MoMoney.