Vix

Discussion in 'Options' started by clarodina, Jun 6, 2009.

  1. Sadly that can even happen with regular equity options. But VIX options require a little more undestanding and definitely some VIX future charts/quotes experience.
     
    #21     Jun 8, 2009
  2. heech

    heech

    Ya know, I've seen that statement several times now... but *other* than the mistake made by the OP in this thread (not understanding that VIX options are priced on the underlying rather than spot)... there's nothing at all tricky about the VIX.

    I have a couple open positions right now (selling volatility.. er.. volatility of volatility). And I actually think VIX is a pretty good trading target.

    It mean reverts; it's a pretty liquid market, and while ask/bid spread is large in cent format... it's only a couple ticks, and it's easy to get filled sitting in the middle. It doesn't gap up/down much over night. It's pretty well behaved.

    I don't see any reason for anyone to cross it off the board. It's not that complicated at all.
     
    #22     Jun 8, 2009
  3. It can take several months to revert to the mean.

    It does gap 10% when markets are volatile.

    The major reason for crossing it off the board is that the options are European style, and that means options can trade several dollars under parity.

    My two cents

    Mark
     
    #23     Jun 8, 2009
  4. Anyone knows brokers that offers binary options on vix?
     
    #24     Jun 10, 2009
  5. MTE

    MTE

    If you are refering to the CBOE ones then thinkorswim does.
     
    #25     Jun 10, 2009