VIX futures covered call

Discussion in 'Options' started by Soon2Bgreat, Mar 12, 2008.

  1. What is the symbol of the option i can use if i want to write a covered call on a vix futures contract.

    The only options i see listed are options on the index itself...i'm just curious if this corresponds to the futures contract. IE. if i get assigned on a short call, they will make me short 1 futures that correct?

    The reason i ask is when i bring up IB, and ask for VIX (futures options) it says there is no listed product.

    I just want to make sure that if i buy a VIX JUN future and sell a VIX option that they will work on the same product.

    I know this may be a silly question, but i'd really appreciate the help.

  2. ellevers


    Vix options settle in cash.
  3. They also seem to be 100x VIX value where as the futures are I correct in assuming you'd need 10 options for every 1 future?

  4. JKG


    save the trouble. just sell naked put (= covered call...)
  5. Vix options are priced off the futures price.

    In my understanding, trading VIX options is essentially trading a european style VIX futures option (assuming you trade 10 options contracts). Of course they are not margined this way.
  6. segv


    Not recommended.
  7. This is the information i was looking for. Thank you.

    All input is appreciated. Thanks guys.