VIX Trade Redux?

Featuring Michael Purves

Michael Purves, chief global strategist at Weeden & Co., revisits his plan to profit from rising volatility. He explains how he is using options to put on a fresh VIX trade in this interview with Justine Underhill. Filmed on July 23, 2018.

Published on
27 July, 2018
Topic
Volatility, Trading, Micro
Duration
8 minutes
Asset class
Equities
Rating
10

Comments

  • RP

    Ryan P.

    28 7 2018 12:19

    15       1

    I learned a big lesson last time I did this trade. VIX options are different than regular options on equities or etfs as they are based on the forward prices of that month. I put on a call spread last February right before the spike but idiotically bought July 18’ calls to cheapen the price. While I made decent money it was almost 10x less than what I would have made if I owned the front month calls. My euphoria transformed into frustration which led to spending a week reading understanding how these things trade and price. Just wanted to share this so others don’t make my same mistake.

  • DS

    David S.

    28 7 2018 01:34

    3       0

    Mike Green in an interview on volatility said the ETF trading may be attenuating the VIX. Any comment? DLS