What are "buying VIX" and "variance swap"?

Discussion in 'Options' started by a529612, Jun 1, 2007.

  1. Cheaper in what sense?
     
    #11     Jun 2, 2007
  2. rosy2

    rosy2

    retail cannot buy a variance swap and replication of one is cost prohibit. your best bet is to buy/sell a vix future. but it loks like no one on this thread knows what a varswap or vix is. they are both volatility instruments, so it doesn't matter if the SP goes up or down. what matters is the magnitude and speed.
     
    #12     Jun 2, 2007