General Trading Chat

Raj232

Well-Known Member
Very low vix, low delta. Bad day for option buyers :(
In fact I'm of opposite opinion... since low VIX would imply low volatility. But any spike in underlying (either upward or downward) will spike up the premiums as well. This should be good for option buyers.

Maybe I'm wrong somewhere .. or missing something... finger pointing welcome :D
 
In fact I'm of opposite opinion... since low VIX would imply low volatility. But any spike in underlying (either upward or downward) will spike up the premiums as well. This should be good for option buyers.

Maybe I'm wrong somewhere .. or missing something... finger pointing welcome :D
The problem is that the spikes do not necessarily indicate that the price will continue in the same direction.

The one way we can use the low vix is to take multiple trades, scalp the options for 10-12 points many times a day.
 

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