I'm looking for some long volatility trade ideas. Which one of the below trades would you do? 1. VIX Oct long call spread (buy strike 19 / sell strike 28) 2. VIX Oct long call option (buy strike 28) Both trades look quite similar, especially in terms of delta and option premium paid. Which trade would you do?? Can anyone contribute some ideas to weigh the pros and cons? call option premium 1.05 / delta 0.2483 / theta -0.0139 / vega 0.028 call spread premium 1.15 / delta 0.2337 / theta -0.0002 / vega 0.0072
Were my arm twisted to trade VIX options, I would buy_19_&_sell_21, looking at some point to sell_19_&_buy_20 and, if the gods smile, sell_20_&_buy_21. But I'm a cheap-ass, and a chicken-shit, and buy reluctantly. (Which means, I look at your two trade ideas as being pretty much the same -- maybe that the 19/28 spread might buy me a pizza (via the 28) for the dollars wasted on a long, *lonely* 19, when it expires unsung (and I wish to drown my sorrows in pizza-binge-ness...))