Basterds keeping the price down on the VIX April 13 calls. VIX up 1.3 today, yet the April 17 calls moved up only 0.30, even though they finished with a 0.65 Delta.
Having trouble understanding that an option that bets on the price of an option, that has its own options is more than the mind can grasp. How many times a year to SPY weeklies pay off 10-1(a lot) and VIX options pay off 10-1 almost never.
i had in an order to sell half my vxx calls and at the close it was a nickel short. At 4:05 i looked and the contracts had sold. Moreover there were settlements after that. Wild stuff it is not unheard of but rare to see 4pm trades still matching at 4:05. I may regret selling half but half covered my cost basis and now I have half free that dont expire till april.
remember the vix and vxx are not the same to be frank premiums on vxx options expanded late today. The vxx had hit its high earlier in the day around 21.39 and my calls priced at 1.09 at that high. But at 21 even at the close they were settling at 1.06. That is premium expansion and its not common lately.
if you are trading weeklies big mistake esp this time of the week you are getting killed by time decay. Buy longer dated.
I only trade options and vega can really get screwed around. Each underlying has its own IV(ie vix) and each strike has its own IV, so you would need to know what the stirke IV was on the date you purchased or sold the option. At a 65 delta on a down day if you were long then you probable lost money however if you were short should havehad a gain. If you do not have software to give you good option information then do not trade them or you will probably loose money.
Why do you think they printed so many weekies just after nflx gap up....... now so many expirations available..... it just a toll to prevent to stock to collapse in a hurry......
Bribed.... someone on cboe.......