Friday, June 27, 2008

VIX

VIX , a favorite one for diagonal spreads.
-Looking at buying December 18 Call and then selling a July 27.5 (or even 25) Call against it. Several combinations can be investigated.
-Percent return on the diagonals using VIX is quite good & the fact that there are several other months to trade, allows traders to make trading VIX into a cash generating machine as long as the Long Position Dec call is quite a bit in the money (ITM).

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