OptionsHouse

Options Trading News

December 11, 2013  Wed 9:35 AM CT

VXX: SEE CHART GET CHAIN FIND STRATEGIES
Traders are seling calls in the iPath S&P 500 VIX Short-Term Futures Note even as it moves higher.

optionMONSTER systems show that a trader sold 4,953 June 55 VXX calls for $5.33. The previous open interest was just 831, so this is a new position.

The calls may well have been sold naked, given the nature of the VXX. It is composed of the two nearest-month VIX futures, which usually carry premiums to the spot volatility index. That explains most of the tremendous losses that the VXX has seen in the last four years since its inception. (See our Education section)

It is trading at $45.88 this morning, up 2 percent on the day. It was at an all-time low of $43.98 two weeks ago and at $147 at its 52-week high.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »