Seeking Alpha
  • Erick McKitterick
    Large 8K June 60 VIX call bought
    12/29/11
    Reply (12)
    • JCH57: That's gotta be pretty deep out of the money at this point. Maybe some cheap doomsday insurance for someone?
      12/29/11
    • Erick McKitterick: Yes sir. For VIX futures to run anywhere near that we would be trading S&P 800.
      12/29/11
    • TonyNed: That's crazy.
      12/29/11
    • Clayton Rulli: Seems like someone is long the vix and sold covered calls? Just sayin, there's 2 sides to every contract
      12/29/11
    • Erick McKitterick: The calls were clearly bought as the b/a was .50 x .65 @ time of trade. If someone got a 20% premium to bid on covered call would be insane
      12/29/11
    • JCH57: Could be that someone knows something we don't. :)
      12/29/11
    • Clayton Rulli: I just had a great idea-Buy 100 shares vix@ 22.75. then sell jan 22 strike call for 4.60, then buy the 20 strike put for .15. You cant lose!
      12/29/11
    • Clayton Rulli: Did i miss something or is this a guaranteed win
      12/29/11
    • Erick McKitterick: cwr83: you can't buy shares of VIX only options and futures contracts.
      12/29/11
    • Erick McKitterick: But if it were a stock and not an index yes that would be a guaranteed win. :)
      12/29/11
    • sthiruva: Erick, what do you think about buying TVIX and CVOL?
      1/12/13
    • Erick McKitterick: TVIX is going to more than likely go down until backwardation comes back into play. CVOL doesn't trade 1000 shares a day so I have no idea
      1/12/13