The CBOE has announced a nice new email service for people wanted to know what weekly options are going to be offered each week. While the list has been relatively stable the CBOE recently extended the list to 35 offerings and they usually make a few tweaks each week. For example, they recently dropped USO in favor of NDX—something I’m not happy about. They …
UPDATE CVOL was shutdown by UBS in May of 2016. It never achieved enough assets for it to be a viable competitor CVOL’s stated goal is to “produce returns that are correlated to the CBOE Volatility Index (the “VIX Index”). ” So far no one has figured out a way to offer a direct investment in the VIX Index, so volatility traders must …
Update redirected to https://www.sixfigureinvesting.com/2010/04/going-short-on-vix/ I do not recommend XXV. At its current price of around $30/share it does not deliver the sort of performance you would expect an inverse volatility security to deliver. This security can go no higher than $40 per share and can only get there slowly. See this post for more information. If you want to be short volatility use XIV …
If you ever plan to trade more than straight long options you should learn to use combination orders, specifically debit and credit orders. . A combo order allows you to execute multiple trades simultaneously at a single integrated not-to-exceed price. Some examples: Creating a simple covered call position, buying the underlying equity and selling-to-open calls Creating a call bear option spread, selling the lower strike …
You can find Barclays’ VXX prospectus here. The prospectus covers both the short term VXX, and the medium term VXZ. This post discusses going long on VXX. This post discusses some choices if you think VXX is going to go down. For an estimated date for VXX’s next reverse split see this post. For an overview of how VXX works, see “How Does VXX Work?” …
