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After a decline in volatility to multi-year lows amidst maybe the best Q1 ever for stocks, some...

  • Monday, April 2, 2012, 1:39 PM ET
    After a decline in volatility to multi-year lows amidst maybe the best Q1 ever for stocks, some traders see Q2 shaping up differently. June 55 calls on the VIX (VXX) traded 30K times early today and June 42.50 calls 15K. With the VIX at $15.23, these bets will pay off only if volatility soars.
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This news story has 8 comments:

  • They are going for .15 and .18 Pretty small potatoes.
    2 Apr 2012, 02:04 PM Reply Like
  • Looks like a backspread (sold 42.5s at $0.50 and bought 2x 55s at $0.20) for a $0.10 credit...so trade still "pays off" as long as VIX below 42.5 at June expiration.
    2 Apr 2012, 02:16 PM Reply Like
  • Not a bad trade but it could be nasty if there is a serious spike near expiration. The ETF's leverage would force an upside crash.

    Would be a nail biter!!
    2 Apr 2012, 07:48 PM Reply Like
  • now that I like. Good luck .
    2 Apr 2012, 08:14 PM Reply Like
  • wish I sold it to them.... 100% loss coming. So out of the money its zero double zero on the roulette wheel.
    2 Apr 2012, 02:19 PM Reply Like
  • Is it better to trade VXX options or VIX options?
    2 Apr 2012, 08:02 PM Reply Like
  • does someone know when VXX volatility will go up? i got like 200 shares of VXX bought between 20 and 23 ;(
    2 Apr 2012, 08:08 PM Reply Like
  • only as delta neutral unless you like blackjack.
    2 Apr 2012, 08:09 PM Reply Like
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