/bloom.bg/3lmsyo3 November 30, 2021 Jeff Bergstrom Editor John Lothian News Lead Stories 19-Hour VIX Options Trade Surges as Stock Market Resumes Swoon Lu Wang - Bloomberg A sizable bet that equity market volatility would worsen appears to have turned a tidy profit in less than a day. About $13 million was spent last night on 65,000 December call contracts tied to the Cboe Volatility Index, with a strike price at 26. Similar volume erupted in the series this morning as the VIX jumped above 27, sending the options to as high as $3.55 after trading as low as $1.75 in the prior session. /bloom.bg/3lmsyo3
How do you guys trade the vix? While the calendar is downward I buy the front month calendar (sell closest expiry) in evens since it decays 2 vols in the last month and only has a range of 6 even in the extremes. I find its best to use trailing stops here as it fills up. When the calendar is upward sloping I buy the front month outright and add through the high.