S&P 500 futures expiring in March rose 0.2 percent at 8:02 a.m. in New York today. But loyalty goes beyond fidelity. The VIX Index is based on real-time prices of options on the S&P 500 ® Index (SPX) and is designed to reflect investors' consensus view of future (30-day) expected stock market volatility. Those contracts would imply a surge in the VIX of almost 500% from its current level. Cboe Trader E-News for Friday, December 11, 2020; December 10, 2020. The VIX index, known as the “fear index” which measures volatility, has been rising, with traders saying it was likely that investors were using Vix as a hedge just in case the pollsters are wrong again and Donald Trump ultimately comes out on top in today's US presidential election.. But there’s always another side to the trade. Lionsgate. Current Plays and Ideas -- The u/vix_calls community on Reddit. I have no reason other than that. VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options.It is calculated and disseminated on a real-time basis by the CBOE, and is often referred to as the fear index or fear gauge.. Options-based VIX values are used for both short- and long-term market direction predictions. I've been reading like Too Big to Fail, When Genius Failed, Capital in the 21st Century, Hedge Fund Market Wizards, etc... My local B&N only has stupid like "One portfolio to make you rich" and a book on reducing Black Swans that I thought would be cool but was ultimately just "add alt investments to your portfolio". r/ufc and r/mma at it with the Anthony Smith circle jerk this time, did all the Jon Jones haters even know who he was before the fight was announced ? The Cboe VIX Index is an index that measures the prices of 30-day option prices (implied volatility) on the S&P 500 Index (SPX). But there’s always another side to the trade. VIX Misconceptions. I'm sure some will disagree but I don't consider VIX to be a way to short SPY (SPX). SPY puts are free money with those expirations. Cookies help us deliver our Services. What is Market Insider? Can someone please explain these Tony Ferguson comments? VIX Put/Call Ratio is at a current level of 0.54, N/A from the previous market day and down from 1.43 one year ago. Option Alpha 12,174 views. The tricky part is in determining how many VIX calls we need to purchase to protect the portfolio. 2. There are several ways to hedge the S&P 500 directly. Unlike traditional portfolio hedges, such as S&P 500 options, VIX calls don’t suffer from “strike drift.” If the S&P 500 rallies, S&P 500 puts lose some effectiveness. Anyone eyeing up some VIX calls? A high reading of the VIX index signals higher volatility in the S&P 500, while a lower reading indicates less implied volatility over a 1-year period. The reality is that VIX Futures act as if they were the underlying of the appropriate vix options series (e.g, satisfying put /call parity) and VIX futures are key enablers for the existence of VIX options because the market makers use VIX futures to hedge their VIX options positions. Hedge efficiency depends on what you're holding! Find the latest information on CBOE Volatility Index (^VIX) including data, charts, related news and more from Yahoo Finance The VIX is often referred to as the "investor fear gauge. View stock market news, stock market data and trading information. The 3 best ways to trade the VIX are to go long via speculative calls, go short via limited risk options, and to buy volatility. The Greeks -- We're in the same area from where that happened, you're on to something, well well well is that green VIX candle I see. Using Reddit Information to better understand Reddit. On twitter you get hammered for your wrong calls, and dedicated haters mock you for years, but they suddenly fall silent when you get the very big calls right and won’t ever acknowledge them. Credit: Getty. Facebook Twitter Reddit Email RSS Feed Newsletter Donate. As I understand it, both VIX and VXX calls are based on futures contracts. The standout trade was one block of 50,000 April $65 calls that were bought for 10 cents. The VIX is a very nuanced product, today Tom and Tony break down various ways of executing a Covered Call in the VIX.. One of the difficulties when trading the covered call in the VIX is there is no spot VIX market, so we must use /VX as the underlying or we can use an ETN on the VIX … Godspeed Autists. December 15, 2016 at 3:57 am Vance, I have been reading your blog for some time and I find it one of the most interesting source of information on volatility products. by scarvesandsuspenders. Some investors, in fact, are readying for a somewhat calmer market at year-end and in early 2021. A Redditor with the username SpeaksInBooleans netted the 2,400% return by purchasing call options on the iPath S&P 500 VIX Short-Term Futures ETN , … Many software packages that report option Greeks (e.g., delta, gamma, theta, implied volatility) report incorrect values for VIX options (LIVEVOL and Barchart (free subscription) are notable exception).Depending on the date and state of the market they can vary from almost correct to widely wrong–giving truly nonsense numbers. Press question mark to learn the rest of the keyboard shortcuts. Credit: Getty. e.g.- The Feb 20 calls are priced against the Feb VIX futures contract, which will almost always differ in price from the spot VIX. If it is not going to act right I will just go ahead and buy calls on the VIX. Barbarians at the Gate. This week comes and the pfizer news hits and the stock goes crazy. Fortunately, the VIX does have tradable options.In fact, options on the VIX are some of the most actively traded contracts the options market has to offer. Unlike traditional portfolio hedges, such as S&P 500 options, VIX calls don’t suffer from “strike drift.” If the S&P 500 rallies, S&P 500 puts lose some effectiveness. https://www.youtube.com/watch?v=tdwYhwg42uI, https://www.youtube.com/watch?v=ZjII8hmII_4. ... reply refresh. Not related to stock-trading per se but def a hardcore finance book. Happily sold covered calls for the last 4 months and got my cost basis all the way down to $16/share. Idea 3: Buy SPY OTM Puts. This casino stock suffered a data breach today. Those who expect market volatility to decrease can profit from VIX put options, which give them the right to sell. VIX calls 3/25 and 4/15 in the 40’s will print big. When the VIX index rises, the S&P 500 usually drops. View stock market news, stock market data and trading information. The sustained rise of the VIX has rewarded investors who had placed bets on a surge in volatility during calmer times. The $ volume ratio of long-to-short VIX ETNs: The total $ volume of VXX+VIXY divided by that of XIV+SVXY. And trust me, I got plenty of mocking and hating during this rally when I kept warning and pointing out issues. The 3 best ways to trade the VIX are to go long via speculative calls, go short via limited risk options, and to buy volatility. Strategies -- I'm trying to understand how to play calls on these vehicles in a smart way, how how best to measure my risk/reward. The Cboe VIX Index is an index that measures the prices of 30-day option prices (implied volatility) on the S&P 500 Index (SPX). Ok-Ad-9608 ... Bought a FCX call on the john this morning. Trading in call options on the Cboe Volatility Index, known as the VIX, outweighed puts by more than 2-to-1 on Friday with the index at its lowest level since July as stocks rallied. TL;DR Bear gang seal team 6 prepping for operation “bull rape”. Why do I even read the rest of Reddit? Thanks in advance. Our annual returns are based on profit/stock price, slippage and commissions are considered as explained here. 04:38PM. Calls are flying off the shelf for this penny stock. "Fear, volatility, and the index move up when stock prices are falling and investors are fearful. We divide the page into three tabs - Stocks, ETFs, and Indices - to show the overall options volume by symbol, and the percentage of … Good to be back brutha, miss this place. Latest News. VIX | A complete CBOE Volatility Index index overview by MarketWatch. The strike for my last covered call was $21 when the stock was sitting at 18, then this week the stock surged to 27 and then 30 before I can react and roll my calls higher. Press question mark to learn the rest of the keyboard shortcuts. New comments cannot be posted and votes cannot be cast, Let's Talk About: To hedge a portfolio with VIX options, the portfolio must be highly correlated to the S&P 500 index with a beta close to 1.0. The CBOE Volatility Index, VIX, is known as the fear index. Short the S&P 500 or Buy Put Options . The anticorrelation between Vix and spx is far from perfect, and neither derivative is perfectly liquid. The Cboe Volatility Index ® (VIX ® Index) is considered by many to be the world's premier barometer of equity market volatility. There is some negative correlation but not a perfect one. By using our Services or clicking I agree, you agree to our use of cookies. ... positions sold to cover margin calls. The Bottom Line Options data points tend to show … ( XIV, SVXY ) the keyboard shortcuts how best to measure my risk/reward ran! I even read the rest of the following at the money 2/21 of... Smart way, how how best to measure my risk/reward need to to. 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