VIX trade for 8/18 exp

Discussion in 'Options' started by atticus, Aug 10, 2011.

  1. yeah, vix could increase in that scenario. :)
     
    #61     Aug 30, 2011
  2. It's obvious that you are a master of the obvious.:D
     
    #62     Aug 31, 2011
  3. Long Sep/Oct 120 calendar if you intend on playing it large. Pick your strike. I wouldn't want to long naked vol here.
     
    #63     Aug 31, 2011
  4. brains, my point in being sarcastic is that you should not be trading vix products if you cannot clearly see a correlation between a spx severe drop and corresponding vix increase.

    your best bet is following atticus's vix trades before you try anything there. without learning convergence, which options trade off the futures, etc..you will be simply giving money away.
     
    #64     Aug 31, 2011
  5. Do you mean long the October short the September or the other way around?. Now I'm confused.:confused:
     
    #65     Aug 31, 2011
  6. Long infers the back month (long).
     
    #66     Aug 31, 2011
  7. OK thanks. Calendars not a familiar trade for me. Will evaluate. Cheers.:cool:
     
    #67     Aug 31, 2011
  8. Long vol and decay. Somewhat diametric conditions, but easier to hold than an outright long or a vertical. Also, the VIX Sep 25/35/45 fly is 3.30 mid. Neutral to 35 with cash currently at 30. The VIX has the payoff but is more Px sensitive here.
     
    #68     Aug 31, 2011
  9. len_len27

    len_len27

    Need your help. I followed your trade two weeks ago, buy the VXX Sep11 42 Put and sell the VIX Sep11 42.5 Put. It is down $250.00, what should I do?
     
    #69     Aug 31, 2011
  10. Going to rephrase my question to: What's the best way to play this ALLIN with a certain maximum bound risk?. I.e.: I put it on, go to another planet, come back on Sep 20 and my position is intact, no broker liquidations, no exchange excuses, no nothing. I exit when I want after Sep 20th. Those calendars look nice, but aren't bound.:confused:

    Think like, you are the small stack in a 3way at a poker tournament, get a playable hand and push allin, you are going to get called, but you will not be pushed out of the hand till the river is dealt. At the river, you go home, or you get to play the next hand with 2x or 3x your current stack.
     
    #70     Sep 1, 2011