VIX - futures io
futures io



VIX


Discussion in Options

Updated
      Top Posters
    1. looks_one Bookworm with 1 posts (0 thanks)
    2. looks_two ncsutrader with 1 posts (0 thanks)
    3. looks_3 suko with 1 posts (1 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
    1. trending_up 1,636 views
    2. thumb_up 2 thanks given
    3. group 4 followers
    1. forum 4 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

VIX

(login for full post details)
  #1 (permalink)
 ncsutrader 
Lenoir, NC/USA
 
Experience: Intermediate
Platform: NT
Trading: ES, ZB
 
Posts: 9 since Nov 2012
Thanks: 6 given, 1 received

Full Disc: I am long VIX Jan 20 calls

Going into the end of the year, I think it will be interesting to see what happens to the VIX. I am curious as to what effect the supposed lack of major retail investments will have on the VIX, especially if we do go over the fiscal cliff/get downgraded etc... I feel like if this situation would have been pre 2008 there would be much more panicked selling at the moment. This could all change on a dime, but it seems like that since the average investor is largely uninvested in equities, that the market is remaining much calmer. It seems like the rest of the market should maybe be behaving like the widely owned aapl. Anyone have any thoughts on the matter?

Started this thread Reply With Quote

Journal Challenge April 2021 results (now extended!):
Competing for $1800 in prizes from Jigsaw
looks_oneMaking a Living with the Microsby sstheo
(107 thanks from 17 posts)
looks_twoSalao's Journalby Salao
(33 thanks from 8 posts)
looks_3Deetee’s DAX Trading Journal (time based)by Deetee
(28 thanks from 11 posts)
looks_4Learning to Profit - A journey in algorithms and optionsby Syntax
(14 thanks from 9 posts)
looks_5Maybe a little bit different journalby Malykubo
(9 thanks from 8 posts)
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Would You Sell Your System?
73 thanks
The Crude Dude Oil Trading System
44 thanks
Big Mike in Ecuador
42 thanks
The New Micro Contract - MICRO BITCOIN coming May 2021
25 thanks
futures io site changelog and issues/problem reporting
24 thanks
 
(login for full post details)
  #3 (permalink)
 Fadi 
Luxembourg
 
Experience: Advanced
Platform: NinjaTrader
Broker: IB / Kinetick
Trading: ES, CL
 
Fadi's Avatar
 
Posts: 489 since Apr 2012
Thanks: 666 given, 646 received


I am not sure you really want to go long VIX at this time of the year. Perhaps just wait for when we come back from holiday in Jan'13?
As you say, end of December is a holiday period, professionals go on vacation and it would very very difficult for the market to sell unless something really major happens... but knowing how things run behind the stages, I am more inclined to think that they will find a temporary solution to the fiscal cliff - just enough to maintain the markets buoyant until the new year.

Be careful with that trade, and good luck

Cheers
Fadi

Successful people will do what unsuccessful people won't or can't do!
Follow me on Twitter Reply With Quote
The following user says Thank You to Fadi for this post:
 
(login for full post details)
  #4 (permalink)
 Bookworm 
Long Island, NY
 
Experience: Advanced
Platform: TOS & Tastyworks
Broker: TD Ameritrade
Trading: Equities, index options and futures options
 
Bookworm's Avatar
 
Posts: 175 since Apr 2010
Thanks: 65 given, 166 received


ncsutrader View Post
Full Disc: I am long VIX Jan 20 calls

Going into the end of the year, I think it will be interesting to see what happens to the VIX. I am curious as to what effect the supposed lack of major retail investments will have on the VIX, especially if we do go over the fiscal cliff/get downgraded etc... I feel like if this situation would have been pre 2008 there would be much more panicked selling at the moment. This could all change on a dime, but it seems like that since the average investor is largely uninvested in equities, that the market is remaining much calmer. It seems like the rest of the market should maybe be behaving like the widely owned aapl. Anyone have any thoughts on the matter?

You are not long VIX Jan 20 calls; you are long VIX Futures calls. There is a difference. Be sure you understand it.

Reply With Quote
 
(login for full post details)
  #5 (permalink)
 suko 
Kyoto, Japan
 
Experience: Intermediate
Platform: TW TOS LiveVol
Broker: TD, TW, IB, Saxo
Trading: VXX, VIX, SPY
 
suko's Avatar
 
Posts: 1,316 since Oct 2013
Thanks: 834 given, 1,403 received

I go into this subject in great depth in my journal "Lady Vol's Primer" here.

We were long VIX 1x2s and also UVXY calls going into Feb. 5. In an event like that you can expect to see your calls return up to 1500% ROC, or more.

>Full Disc: I am long VIX Jan 20 calls

Note that this is a very old post from 2012.

Generally speaking you cannot afford to warehouse Vol like that. Everybody wants to do it but it's too expensive. It's kind of like the Holy Grail.


The only people that do hold long vol products are institutions that have to do so due to Dodd Frank. They try to find a way to finance it if they can.

The cheapest way to get some long exposure when VIX is low like right now is via long VIX call spreads. Go about 45 to 60 days out, with one leg close to the money and the other leg much further out -- 10 strikes. Find a way to finance. Probably the sweet spot on closing is at 14 to 20 days out.

VIX call spreads much more economical than straight calls.


"Persistence is very important. You should not give up unless you are forced to give up." -- Elon Musk
Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to suko for this post:


futures io Trading Community Traders Hideout Options > VIX


Last Updated on September 15, 2018


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1,800 in prizes!

April

Seven Trading Mistakes Solved With Smart Trading Tools w/Brannigan Barrett

Elite only
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts