This topic contains 1 reply, has 1 voice, and was last updated by 
Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
VIX at 73
Cash VIX is at 70+
However, VIX options are priced based on VIX future contracts. June VX contract is trading at 44.90
Either VIX is coming down or the VX contract is going towards 80.
I’m betting that VIX at 80 is not a sustainable level over the next 90 days. I can be wrong, so we’re going to use a defined risk trade.
Order Ticket Type Asset Duration Strike C/P Buy To Open VIX 17JUN 85 CALL Sell To Open VIX 17JUN 80 CALL Total Credit: 0.50 VIX at 42.64
Buying to close 80/85 Call spread is a good way to manage risk in this trade because there’s 0.10 of premium left in this trade with 58 days until expiration.
Order Ticket Type Asset Duration Strike C/P Sell To Close VIX 17JUN 85 CALL Buy To Close VIX 17JUN 80 CALL Total Debit: 0.10
Viewing 2 posts - 1 through 2 (of 2 total)
You must be logged in to reply to this topic.