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.

Eric J. Fox said...

Thanks Bill.

Eric J. Fox 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

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