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  • VIX Flirts With Pre-2008 Record Highs [View article]
    The VIX isn't that great to trade. If you buy puts, the fact that a drop in the VIX means a drop in volatility. When volatility drops, so does option premium. So you may be right in direction, but you're losing in volatility. I would rather buy stock to play a relief rally bounce. That way I'm not affected by the decrease in volatility. Don't forget that volatility makes up a good chunk of option premium, especially now since VIX is so high.
    May 20 02:35 PM | 1 Like Like |Link to Comment
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