Questions tagged [vix]
20 questions
8
votes
7 answers
What does it mean to long the convexity of options?
In this Bloomberg video, Curnutt talks about volatility and the convexity of options. Specifically, he says;
The spread between the VIX sitting there at 20 for a period of time and this realized vol of only 10, that's a big spread. Options market…
AK.
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5
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2 answers
How should I use the Volatility Index?
I do have a basic understanding of the Volatility Index (Chicago Board Options Exchange Market Volatility Index), but I wasn't sure how this index is best used by an individual, average investor.
From what I can gather, you basically buy it when…
Enno Shioji
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3
votes
4 answers
If you want to trade an equity that reflects changes in VIX, what is a good proxy for it?
If you want to trade an equity that reflects changes in VIX, what is a good proxy for it?
VPR
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2
votes
1 answer
VIX and XIV moved in same direction?
Both VIX (S&P 500 volatility index) and XIV (the inverse) decreased price today. Aren't they supposed to have the exact opposite percentage gain/loss intra-day?
Keven Wang
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2
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1 answer
How to hedge volatility decreases
My particular options positions are typically a long delta, and long vega. Decreases in implied volatility, or specifically the VIX, can drastically alter the profitability of my position.
Is there a way to hedge this?
My possibilities seem to…
CQM
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2
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3 answers
Buy and hold VIX futures for guaranteed profit?
This question was inspired by this Motley Fool article: VIX Investing: Why Not Just "Buy Low Fear, Sell High Fear"?
Buying low fear and selling high fear seems to be a guaranteed profit strategy. Simply buy when the VIX index is low, and sell when…
Anonymous
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1
vote
1 answer
XIV Liquidation and VIX clearance
I was watching the TV show Billions today, and a fund manager in the show was referring to how their fund avoided XIV Liquidation by selling VIX position earlier than others. I didn't quite understand this because I thought if XIV is liquidating and…
Chanseok Oh
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2 answers
Why can I see/trade VIX but not S&P/TSX 60 VIX?
I am using Questrade and if I do a look up for VIX.IN, I find it:
However, I can't find S&P/TSX 60 VIX:
Why is this?
I can see that it is being traded...
karancan
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1
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2 answers
How to understand a volatility based ETF like VXX
The ETF VXX is based on the volatility index VIX. If volatility goes up, VIX goes up and VXX goes up. Similar thing for the downside.
Now when I buy an ETF like SPY, I can conceptually understand that I am buying a small portion of each of the…
Victor123
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Are VIXW options PM-settled like SPXW?
Cboe explicitly defines the difference between the options on SPX as AM-settlement and SPXW as PM-settlement, but for VIX and VIXW, they say they're both AM-settled.
I can see in my trading platform that VIXW options expiring today are still…
Laith
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Form 6781 and position close date when becoming different state resident?
It seems that Form 6781 Part 1 does not allow to specify position close date. This is where I believe, for example, VIX option trades should go.
And it seems that TurboTax in case tax filer moved between states mid year, relies on close date…
user4910112
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vote
1 answer
How do the VIX options work behind the scenes?
I cannot wrap my head around how do the VIX options work. For example SPY, simple and easy, there is a basket of stocks, and when you buy one share of SPY you own a little piece of every of 500 blue chips. If you buy options for SPY, you have a 100…
user102842
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1
vote
1 answer
How was the media able to identify that certain VIX put and calls were made by the same entity?
From the article below, how can someone be certain all these trades were performed by the same entity?
To fund it, the investor sold approximately 260,000 VIX puts expiring
in January with a strike price of 12.
The trader then used those …
JDM
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0
votes
3 answers
When using the VIX index, is it similar to calculating volatility?
Im trying to understand the VIX Index, it gives the implied volatility of the S&P500.
Now if I was to calculate the volatility of the S&P500 using standard deviations of the returns over a period of time & compared this with the VIX index, should I…
Akshat
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0
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1 answer
Why are historical prices of stocks different on different websites? Which one should I believe?
So, this might look like gambling, but I recently read about a get-rich-quick scheme: trading SVXY or XIV or ZIV or whatever ETF/ETN there is that shorts the VIX futures in some way, buying whenever the VIX spikes to some high number (e.g. 25+) and…
user2213307
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