Friday, October 10, 2008

VIX November Futures

Per reader request, a chart of the VIX November futures (X8), courtesy of Futuresource.com:

[source: FutureSource]

7 comments:

Anonymous said...

put ratio backspread?

sell put atm-itm....buy putS OTM

Bill Luby said...

I'm a big backspread fan, but I find them difficult to turn into winners when IV is so high.

Anonymous said...

I do it.

Sell vix put 70

buy vix puts 40

october 21.

Anonymous said...

I like that trade. Relatively low risk with great leverage. Prolly won't be a big winner but you never know in this market.

TJF said...

Thanks Bill.

TJF said...

What do you think of buying the Nov 30 puts on the VIX? Trading at 0.65-0.70 with the Nov futures contract at $42.90.

Bill Luby said...

Eric,

I'm not a big fan of the trade because of the high IV (100ish) that you will need to overcome.

You might want to consider something where you have less theta risk, such as a bear call spread (e.g., 40/45 or 45/50), or is not as far out of the money. Just a thought...

Cheers,

-Bill

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 © 2007-2023 Bill Luby. All rights reserved.
 
Web Analytics