Friday, October 16, 2009

Interesting ‘Pseudo VIX Buy-Write’ Trade Idea

Vance at VIX Based Trading runs a blog devoted largely to using the VIX as a market indicator and as a trading vehicle. I only recently discovered the blog, but have been impressed by the content. As a matter of fact, my favorite post so far just happened to pop up on my screen a few minutes ago. Titled Pseudo Buy-Write on VIX – Long 10 Oct Calls, Short 22.5 Oct Calls, the author describes an innovative way to approximate a VIX buy-write strategy using a vertical spread.

With all the great blogs I am still discovering, it looks as if I am going to have to expand my blogroll once again. Better yet, I think it might be more helpful if I were add a second options-specific blogroll…so look for that change over the weekend. Assuming, of course, the blogroll does not get bought out by Bloomberg first…

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