Hi all, Reading the Hull's book, it says when pricing the options on S&P 500, I need to take into consideration of the continuously compounded...
How is the futures on VIX priced then? I imagine there is no F=S0*exp(r*T) ?
On the wiki page, it says the following about the VIX index: ------------------------- The VIX is quoted in terms of percentage points and...
Could you please elaborate a bit more? Thanks!
Can you please elaborate more on the pricing of VIX options and VIX futures?
Any thoughts about how options on VIX should be priced?
I see. That's why option on QQQQ is better in terms of spread... How about the spread of trading VIX directly...?
Well, if you think "correlation" trade is basic... please give me some pointers. For example, some books? I will go buy them... Thanks!
long call+short stock is a long put - K, and 2 long calls+short stock is a straddle - K... Why don't directly buy straddle, then? You want...
ATM options on SPX have too large spreads. Don't know why...
Thanks. I should have added that I am looking for short term trading such as 1-day time frame. Also the way you suggested is not pure vol play,...
I think that's a great idea. Since I am forecasting vols, why don't I directly trade $VIX... ... Hopefully it has lower spreads...because I...
I agree too. We should compare ATM straddles to other ATM volatility trade strategies...
Hi all, I have a model which forecasts volatilities. I tried some paper trading using index option straddles. The result was bad because of...
Hi all, I have modelled the volatility and correlation of the stock prices of the two stocks jointly,... and based on the model, I have a...
To trade volatility, what trading strategies can I use in addition to straddles? The straddles have too much bid-ask spread ...
Why doesn't it make sense to other people? Delta-hedging is typically done by option writers. I am a retailer investor, and I want to play...
I am doing paper trading every day... The questions I've raised are all very practical detail oriented questions...
Thanks dd4nyc. But indeed I am doing paper trading, and found no clue and confused -- that's why I am asking these questions... I googled a lot...
I am not taking it negatively. But you have to be constructive. What's the usefulness of writing a response without any constructive info? I...
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