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