Friday, December 7, 2007

Marc Allaire on VIX Options

I was only half kidding when I noted in the VIX and More disclaimer “Anyone wishing to trade VIX derivatives should have their head examined.” If you pick your spots, there are some great VIX setups out there, some of which Brian Overby recently highlighted and I summarized for the blog. VIX options can also provide relatively inexpensive portfolio insurance. The problem is that VIX options have many idiosyncrasies that make them much different from what even an experienced options trader might expect to encounter.

Today I see that Futures & Options Trader has included an article by Marc Allaire (author of The Options Strategist) on the subject of VIX Options on pages 16-19 of the current (December 2007) issue. Allaire is given enough space to get under the hood and offer up a fairly detailed treatment of VIX options. For those looking for a beginning to intermediate treatment of the subject, this is a good place to start. Fortunately, Futures & Options Trader is available free of charge in digital form. If you follow the link above, the logistics are self-explanatory. Note that these are the same people who also put out Active Trader Magazine.

Finally, if you are interested in an excellent free publication dedicated to VIX futures, I highly recommend the CBOE’s own Futures in Volatility monthly ezine.

0 comments:

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2013 Bill Luby. All rights reserved.
 
Web Analytics