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topher2

topher2
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  • Buy And Sell Volatility At These Levels [View article]
    You can't trade the spot VIX - VIX options are priced off the VIX futures
    Mar 14 10:27 AM | Likes Like |Link to Comment
  • VIX Withers Down Below Technical Support After Huge Job Loss Catalyst [View article]
    There certainly are VIX options - but I am wondering if you are talking about the price of VIX options (and what measure you are using for that?) or simply the VIX (ie the cost of SPX options).
    Dec 8 10:26 AM | Likes Like |Link to Comment
  • Is the VIX Signaling an Inflection Point in the Markets? [View article]
    The VIX is actually calculated from the S&P 500 and includes a wide variety of options. It is highly viable, but must be seen for what it is, a volatility surface, and should be viewed in terms of historical volatility, currently at 95 percent.
    Oct 20 12:35 PM | Likes Like |Link to Comment
  • Is the VIX Signaling an Inflection Point in the Markets? [View article]
    The VIX is actually computed from the S&P 500 options, at least since 2003. It is a very viable tool, but must be looked at for exactly what it is. It includes a wide range in its calculation and is a volatility surface, not simply implied volatility. It also needs to be looked at in terms of historical volatility, which is currently at 95 percent, far higher than the VIX.
    Oct 20 12:33 PM | Likes Like |Link to Comment
  • Profiting From Market Volatility With VIX/ETF Pairs Trades [View article]
    Just to be clear - they are priced as the above writer noted off of the futures - so they cannot trade below intrinsic value based on what they are actually priced off of (if that is at all clear). Furthermore, those calls that you call cheap, were exceptionally expensive (plug the futures price into an options pricing calculator, instead of the VIX spot price). If you look at the "at-the-money" calls and puts in respect to the futures price, they will look like they are priced appropriately.
    VIX calls and futures should only be traded by those who really understand the product.
    Sep 18 08:52 PM | Likes Like |Link to Comment
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