How to Hedge a Short Options Position With Futures?

Contents Step 1: Determine the delta to hedge Step 2: Determine the micro futures contracts needed Step 3: Setting the order Conclusion This is an interesting question that came to…

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Shorting Volatility with a Collar

Contents Shorting volatility The Danger of Shorting Volatility August 18 August 23 August 24 – Selling Another Call August 30 FAQs Conclusion If you know about the collar option strategy,…

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Profitable Options Selling vs. the VIX Index (Is There a Relationship?)

Is there any relationship between selling options profitably and the level of the VIX Index? Has selling straddles at higher VIX Index levels historically been more profitable than selling straddles…

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CBOE Volatility Index Guide: VXST, VIX, VXV & VXMT

The CBOE has four primary volatility index products: VXST, VIX, VXV, and VXMT. Each volatility index quantifies S&P 500 Index (SPX) option prices with varying lengths of time until expiration….

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What Are Cash-Settled Options?

After all, at their core, options are just contractual agreements between a buyer and seller to potentially do a transaction on a specific date. And the process that ensures that…

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Dollar Rallies While VIX Drops After CPI, What Dictates the Market’s Next Move?

This week’s most highly-anticipated event risk has passed, and in its wake we are left with higher rate Fed expectations, an uncertain Dollar outlook and a drop in expected volatility….

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Low IV Stocks

Despite spiking yesterday, market volatility is hovering around the lowest levels we have seen for the last six month as measured by the VIX index. The next VIX spike could…

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VIX Surges Higher as Equities Jump Ahead of Inflation, Rate Decision Distortion

Anxiety is rippling through the markets in advance of the heavy event risk ahead. While the FOMC rate decision may be the peak event – particularly for the US –…

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SPX 0 DTE Iron Condor Backtest Results

Volatility has started dropping but is still elevated compared to a “normal” market. In high volatility environments, option premiums increase. Higher volatility means a 15 delta put is now further…

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VIX Expiration Calendar

Below you will find the VIX expiration calendar for 2022, 2023, and 2024, plus historical expiration dates going back to 2004. Contents What Is VIX? VIX Expiration Details Weekly VIX…

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