Vix cover call options
You are using an out of date browser.
Montréal Exchange - MX Covered Call Writers' Index (MCWX)
It may not display this or other websites correctly. You should upgrade or use an alternative browser. Discussion in ' Trading ' started by rockthecasbah12 , Nov 21, Log in or Sign up.
If somebody wanted to essentially trade a "VIX covered call", what would be the best way going about this.
I know VIX has listed options, but you cannot trade the VIX itself. I know there are 2 different futures and the VXX. Is anyone here experienced in Volatility trades and has insight for me? Do you want to trade something like a covered call? If so, then I assume that your stance is, "I am bullish, but only a little.
Buy the 15 strike, sell the 20, for example. Can you tell me exactly how the VIX options are settled?
VelocityShares Home - VelocityShares
My goal is to take advantage of the high premium on some of the vix calls. Depending on exactly how they work, this may or may not actually be a possibility.
You can use LEAPS as the underlying and sell front-month calls against them. You then profit from the exponential theta difference between the two expiration dates.
You have two problems with that. First, VIX options don't have Leaps, they only go out to May And second, even if there were Leaps, the front month options and Leaps would have different underlyings.
Instead of a covered-call, why not just do a short-put instead? Then I would sell one VIX call option. Does that sound about right for getting as close to a covered call for this?
Volatility Unleashed: Covered Calls - Ticker Tape
You must log in or sign up to reply here. Your name or email address: Do you already have an account?
No, create an account now. Yes, my password is: Forums Forums Quick Links.
Search titles only Posted by Member: Separate names with a comma. Search this thread only Search this forum only Display results as threads. Style Modern Layout V2 Contact Help Advertise Home Top RSS. ET IS FREE BECAUSE OF THE FINANCIAL SUPPORT FROM THESE COMPANIES:.