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 contract...is 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.

    Thanks.
     
  2. ellevers

    ellevers

    Vix options settle in cash.
     
  3. They also seem to be 100x VIX value where as the futures are 1000x...am I correct in assuming you'd need 10 options for every 1 future?

    Thanks.
     
  4. JKG

    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

    segv

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

    All input is appreciated. Thanks guys.