VIX Options
Those looking to trade VIX options need to know what they are trading. VIX options are very different from equity options in many many ways, some of which are:
- They do not expire on 3rd Friday of the month. They expire on the Wednesday at open – sometimes it is the 3rd Wednesday of the month, sometimes it isn’t…
- They are priced off of VIX futures and not the cash VIX index
- The calendar spreads work very very differently, and one can be burnt badly if one doesn’t understand how calendar spreads would work
ToS did an article on VIX options back in the February 2009 edition of their quarterly magazine. The article is on the pages 36-39 of that magazine. Click here to access that magazine.
