>5000 crypto threads >literal 0 discussion on VIX back

no one does options here on /biz/... it's crypto and penny stocks for RH...

No one is going to understand the VIX backwardation, nor contango...

Feel free to enlighten the unclean though

I always listen to you anon, but you typically belittle and dont write paragraphs

>>1946055

Vix will turn down tomorrow or wednesday.

I'll be buying puts on the vix tomorrow and enjoying the ride down.

>>1946091
im trying to emphasize the love tho

File: 1476030888905.png (322KB, 553x560px) Image search: [Google]

322KB, 553x560px

>>1946055
not the end of the world for where we are at and its not inverted by a long shot. you can clearly see this

pretty sure they call this the "bitch shakeout"

>>1946055

Why is the blog guy and >>1946126 this guy short on VIX? I don't get it.

I see how the sellside on this trade wants to profit from calm markets and makes them even calmer by selling the futures, as WSJ/ZH explained, but isn't that rather risky because VIX has limited downside potential but could spike to 20 points easily on some unforeseen event?

>>1946126

turn down for what?

Can someone please answer my question? >>1946367

These guys are selling volatility insucrance by selling futures, got it, but why would anyone do that right now? It's like selling fire insurance when a forest fire is creeping towards you.

>>1946579
I do it all the time just ball the fuck up

>>1946935

How do you sell (write) the options? And how do you stay safe? By putting up a much higher strike and fishing for naive traders?

>>1947098
ive been selling svxy puts, and have been adding on short svxy calls as the vix backwardation creates less upside risk
once i am assigned svxy stock then it will be all covered calls with no upside risk.

if you look at the other blog posts i go into a lot of the conceptual explanation behind short vix, and ill be posting more all the time so feel free to follow

>>1947226

So essentially you short straddle the VIX via ETF options? Or am I getting this completely wrong? You sell the puts and the calls? Or do you sell the puts and buy the calls?

Sorry, not a native english speaker and just getting used to market lingo. And how do you sell options? Which broker do you use? What are the margin requirements?

>>1947264
with backwardation kicking in I am moving basically into short straddles, but across the whole vix lifecycle i'm from only short puts, to strangles, to covered calls , then cycling back and vix drops.

I'm on tastyworks for a broker which has great margin requirements, but I'm doing everything cash secured so all the risk is fully defined.

I'm trying to write a balance of mostly conceptual discussion with a little trade journal-ish posts , although I hate blogs that are literally just posting trades with no discussion.

>>1947358

you are moving into short straddles because when the market goes back to contango, prices will converge and stay relatively the same, so cash in on the premiums, right?

Sorry to ask again, but this really takes some mental gymnastics to wrap your head around it.

One more question: You seem to do this for a while. In all honesty, does it pay off? And can you ride VIX permanently?

The thing is, for every trade you close, be it options or stocks, you have to find a new one (at least how I am seeing it) to keep the machine going. Can you trade the VIX infinitely, to generate a constant stream of profit (given that you are right more often than wrong)?

Will keep track of your blog, thank you, anon.

so i should buy SPY puts?

>>1947804
Does it pay off? only as much as investing does, obviously there will be big temporary draw downs.
check out my other posts but im basically using short volatility as an SPY replacement, trying to get bigger premiums and rebounds on something highly correlated.
So IMO you can ride VIX as long as you could ride SPY

http://shortvix.blogspot.com/2017/03/short-vix-as-spy-replacement.html

>>1948227

Thank you, anon, your blogpost made it much clearer to me. Nice niche strategy. Thank you a lot.