NaughtyPines

AS WITH ALL THINGS, THE BEST VIX PLAY INVOLVES PATIENCE

CBOE:VIX   Volatility S&P 500 Index
As you can see by the chart below, VIX             sub-12 doesn't happen very often, and while I know that folks like to play the VIX             in the +12 to infinity no man's land (myself, on occasion, included, see post below), I think the better bet is to wait for sub-12 VIX             and then play this index via debit spread (e.g., 10/11.5, 10/12, 10.5/12 call spread) where you know your risk up front, taking between 25% and 50% max profit when that occurs and then running since VIX             can rapidly cave, leaving you to hold the bag ... .

Point in fact, I don't trade the VIX             or VIX-related products as a general matter, since the vast majority of my positions are already "hedged" with a short call side matched with an oppositional short put side. Moreover, as a premium seller, I am already trading or selling volatility .

What VIX             and long VIX-related products were originally designed to do was to hedge long equity positions in the event of a market downturn, but they have morphed into an instrument that traders are attracted to due to the price swings these products experience over short time frames ... . The reason why I primarily look at VIX             on a daily basis is as an indicator of broader market volatility and, as such, as a sign of whether to enter a premium selling play in a broader market index or index ETF , such as SPX             , RUT, SPY             , IWM             , etc. rather than as a possible options play in itself. But, then again, if I'm going to be watching the thing on a daily basis anyways, why not try to get a trade out of it ... .
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out