Nice July VIX Butterfly possible

Written on June 6, 2007 by OptionsRopeaDope

I just ran this trade in my OptionsHouse software:

VIX July 13 - long 1 call

VIX July 14 - short 2 calls

VIX July 17 - long 1 call

 and it can be done for a credit - very rare. You do have to put up Margin, and the trade will be unprofitable if the VIX closes above 15.1 or so, but the chances are extremely unlikely.

Popularity: 5% [?]

If you enjoyed this post, make sure you subscribe to my RSS feed!

Other posts like this one:

  • VIX Butterfly
  • Closed GM - 12% but a scare
  • Position Updates - 1 Calendar, 2 Condors
  • Book Review - Options Strategies for Directionless Markets by Tony Saliba
  • Adjust - EEM 150/160 Double Calendar

    • Category Posted in Vix

    RSS feed | Trackback URI

    Comments »

    No comments yet.

    Name (required)
    E-mail (required - never shown publicly)
    URI
    Your Comment (smaller size | larger size)
    You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> in your comment.

    Trackback responses to this post

    Copyright (C) 2008, OptionsRopeADope, LLC All rights reserved. U.S. Government Required Disclaimer: Commodity Futures Trading Commission.*Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.