Selling VIX puts

Discussion in 'Options' started by paget, Jun 9, 2021 at 9:56 PM.

  1. paget


    I am wondering what is wrong with selling VIX puts when VIX is at some super low level(ie. historically close to 10). It's very hard for it to go lower and in worst case we will get to pay our strike price(x100) on expiration. I know the premium is trash but assuming we would re-buy the option(close) at smallest VIX spike it's still going to generate some profit. Just what could go wrong? Poor liquidity of short term VIX puts preventing us from closing position to secure premium? Commissions?
  2. guru


    Nothing wrong. This guy made tons of $money selling VIX puts in the past:

    But others lost tons of money, so you still have to understand when to sell, how much, when to get out, how to hedge, and when not to sell them.
    tonyf likes this.
  3. destriero


    The 30d 16P is 21 cents.
  4. destriero


    It's a tiny account and the 80x return is fabricated.
  5. destriero


    The 16P is a 1.7% return on margin for a 27d hold.
  6. KCalhoun

    KCalhoun Sponsor

    Fwiw I think VIX is due for an upside move soon, I'm long UVXY and will scale up if mkt sells after tomorrow morning 8:30 cpi numbers out.

    Long volatility here
    Master Pu likes this.
  7. guru


    Well, he was posting quite a lot of good VIX trades in real-time, including before placing them and while in the trade(s), somewhat like you did sometimes :)
    He also offered access to fully audit his account.


  8. destriero


    Sure, bc everyone is going to ask to login to his account. There is no way he returned 80x selling naked VIX putas. "Reliable" twitter account? lol what a joke.
  9. iprph90


    I will buy calls when/if Vix reaches 10 again....don't think it will happen anytime soon.
  10. Relentless


    I've been following @ZeContrarian for years.

    Guy is a wizard. Noone here holds shit to him when it comes to understanding the $VIX inside and out.

    To say otherwise just means you haven't followed him long enough or you just don't have a f****** clue what you are talking about.

    Do what this guy says. Free money.