It's pretty tough to find an image to illustrate something as abstract as the VIX option -- but how about one of fast movement coming into focus? It's a skill every options trader is trying to cultivate, and the purpose of this blog is to help you cultivate that fast-moving, more intelligent "eagle eye" for options trading. I'm on the road again this week, but I wanted to share this online video interview I did with Steve Smith, options columnist for TheStreet.com, about VIX options. Along with these two blog posts I wrote previously on the subject, these two educational items together might help bring the very tricky business of understanding VIX options into better focus for you.
And let me know if you have any followup questions! It's a difficult concept and one that I hear about often from traders, so I'm eager to help clear up any confusion on this.
Regards,
Brian (OG)
[image: coming into focus by Gavin Cromhout on flickr]
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options.
While implied volatility represents the consensus of the marketplace as to the future level of stock price volatility or probability of reaching a specific price point there is no guarantee that this forecast will be correct.
Any strategies discussed or securities mentioned, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement, recommendation, or solicitation to buy or sell securities.