VIX index rallied but VIX call options fell, what is it implying?

Discussion in 'Options' started by blnbr, Nov 18, 2013.

  1. blnbr

    blnbr

    VIX index rallied over 5% this morning(until 10:30am ET) but both December and January VIX call options fell at the same time.

    What is this implying? The index will fall to a new low in the following days? Or it's just the market maker playing a trick or else

    :confused:
     
  2. How about those who sell covered calls? It could mean a move up in VIX but not a big one. Also, SPY went above yesterday's high. This may have made the VIX buyers think twice, or wait until a lower low in SPY.
     
  3. sle

    sle

    The options are priced off the VIX futures curve - the futures are down, the curve is flattening a little.
     
  4. Which futures are used? Is it like VXX?

    Also are there people who buy volty on spy and sell it on VIX futures?
     
  5. sle

    sle

    VIX futures, see here: CFE
     
  6.  
  7. good eye sle on the above in particular.
     
  8. sle

    sle

     
  9. xandman

    xandman

    Is there a direct relationship with the volatility term structure and the futures curve?

    is that the key difference in trading futures options and stock options?
     
  10. there isn't alot of difference trading vix options as oppose to trading vix futures.. long synthetic in one series and short synthetic in the next series , is the same as long the front future, short the next..

    your going to look at where the futures are trading to see where atm is
     
    #10     Nov 18, 2013