Buying the VIX. Higher Volatility Cometh!

As a result of the most recent rally in the S&P 500, implied volatility of options on the S&P 500 as represented by the CBOE Volatility Index (VIX) have tumbled below the 14 mark again. Historically speaking and through a multi-week/month lens, that represents a good spot to buy some Vix call options through a multi-week/month lens.

Serge Berger
President/Founder
TheSteadyTrader.com

2 Comments

  1. Herb

    good comment. you could have explained how to buy the VIX option. as far as I know, you can’t buy options on an Index so you must have bought them on a proxy of some sort … which ones? the VXX? … would appreciate your reply. Thanks.

    Reply
    • serge berger

      Herb, I bought options on the VIX. Those are liquid and easily traded. I shy away from the VXX due to its composition.

      Reply

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