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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: alanrs who wrote (908)	12/20/2013 11:16:35 AM
From: Bridge Player	Read Replies (2) \| Respond to of 2591

The VIX is at 13.24 as I write, down .91. Not particularly surprising with a solid rally in stocks. Silly thing goes up only when volatility is to the downside, not when volatility is to the upside. That said, it is interesting and instructive to watch the VIX options trade. The February and March 13 VIX puts are basically unchanged at only .30 asked. While the March 16 call, much farther out of the money, sits at 2.05 bid 2.15 asked! e.g traders view is that there is much higher probability of the VIX heading back towards 16 than breaking below 13. Or maybe it's just reflection of greater demand (via options) for insurance against a potential correction. Bearcat bob on another board wrote one time about selling volatility short via writing monthly short VIX calls. It's been pretty profitable this year as it stays well contained except for a brief spike in October during the govt shutdown. I've never done it. As skin pointed out, the VIX seems to continue to refuse to crash. Hopefully the same will continue for UVXY.