Vol-trading for beginners

Yes more or less. Last time my short vol stuff worked so well was sometime right after the fin crisis of '08. The vix futures are ridiculously overpriced given how the sp is moving. If you have a robust method of spreading the two you are making bank. Just don't do what Ronin did

 

Ronin blew up on the expiration trade, which is not really a short vol trade per se.

 

I was short NDX vol and moved into SPX on Thursday close. I am short 40K vega and short 2-3K delts.

 

I alluded to their size not method.

 

???
buying a put is like shorting the future.

 

Yes, they literally bet the farm on a single print. YOLO in it's finest.

 

wait, they yolo'ed on a vix monthly expiration?

 

This is very bad news for my outright longs I guess.

 

The short 40K SPX vols is a lot of impactful that 2-3K deltas. Vol trades inverse to price so the 40K vols should earn more than I lose to deltas. I made a lot on Friday trading D1.

 

Thanks for trying to make me feel better, in your weird options way, hehe.