TINKW

Profiting From Market Volatility With VIX/ETF Pairs Trades

Good philosophy, but most likely won't work in practice. The flaw is how the VIX calls work. With all that's going on, why are VIX calls not more expensive? There's a very detailed explanation that you find by searching on the internet. Suffice to say though that VIX options don't track the VIX index, they track VIX futures contracts which are priced totally different . The bottom line is that at extreme high VIX prices, underlying calls will most likely not even trade at their intrinsic vale. Be careful!