OEX PC Low

S&P 100 Index - (OEX) Call Put Total Volume 24,179 27,028 51,207 Open In 68,215 82,875 151,090

For the 2nd day in a row, VIX call options are not only unpopular but are trading at very less premium compared to puts. Especially check the call option that I selected, it is trading below its value.
http://imageshack.us...vixoptions.jpg/

My post 2 days before was http://www.traders-t...mp;#entry588043 nobody here was concerned about the post. Unfortunately at the time VIX spiked to 40 on friday, I was not at my computer. I wondered how much these call options were traded for!

S&P 100 Index - (OEX)
Call Put Total
Volume 24,179 27,028 51,207
Open In 68,215 82,875 151,090

Props to you for continuing to provide quality information during this hysteria.

For the 2nd day in a row, VIX call options are not only unpopular but are trading at very less premium compared to puts. Especially check the call option that I selected, it is trading below its value.
http://imageshack.us...vixoptions.jpg/

My post 2 days before was http://www.traders-t...mp;#entry588043 nobody here was concerned about the post. Unfortunately at the time VIX spiked to 40 on friday, I was not at my computer. I wondered how much these call options were traded for!

Was watching the VIX on the spike, Dr. My boys were holding 27.50 calls. Put them in at 1.95 when the Vix dropped into the 27.80 range. When the Vix was about 38-they were trading around $7, as I remember. I had the guys picking their own exits, and my personal limit order did not get filled(put it in last, as is my habbit-bummer) so I wasn't watching when it hit 40. At 38, however, I know they were trading well below face value. But it makes sense, really. Lets say you just busted a 2 sigma move-are the odds not now harder of busting a 3, 4, and so on?

My experience with trading the VIX, though-which is an unusual venue-as it has no underlying is this: I only buy calls near what I percieve as the end of a drop. I buy dead on the money,or way out of the money-cheap. In my experience it does NOT pay to attack them deep in the money. As a matter of fact, I only buy at the money if I percieve an immediate thrust North coming. Another thing you want to do with the VIX is make sure you are buying at a strike with a lot of current depth=contracts with low open interest are pure death there. I also like to apply my "ghost in the machine theory"-relative to the Greeks. I believe the Greeks are accepted for face value much too deeply by many option traders-and abused by the market makers who know the message the Greeks send. If you use the Greeks trading options, drop me an IM-and I'll share an easy but good technique with you.

For the 2nd day in a row, VIX call options are not only unpopular but are trading at very less premium compared to puts. Especially check the call option that I selected, it is trading below its value.
http://imageshack.us...vixoptions.jpg/

My post 2 days before was http://www.traders-t...mp;#entry588043 nobody here was concerned about the post. Unfortunately at the time VIX spiked to 40 on friday, I was not at my computer. I wondered how much these call options were traded for!

Was watching the VIX on the spike, Dr. My boys were holding 27.50 calls. Put them in at 1.95 when the Vix dropped into the 27.80 range. When the Vix was about 38-they were trading around $7, as I remember. I had the guys picking their own exits, and my personal limit order did not get filled(put it in last, as is my habbit-bummer) so I wasn't watching when it hit 40. At 38, however, I know they were trading well below face value. But it makes sense, really. Lets say you just busted a 2 sigma move-are the odds not now harder of busting a 3, 4, and so on?

My experience with trading the VIX, though-which is an unusual venue-as it has no underlying is this: I only buy calls near what I percieve as the end of a drop. I buy dead on the money,or way out of the money-cheap. In my experience it does NOT pay to attack them deep in the money. As a matter of fact, I only buy at the money if I percieve an immediate thrust North coming. Another thing you want to do with the VIX is make sure you are buying at a strike with a lot of current depth=contracts with low open interest are pure death there. I also like to apply my "ghost in the machine theory"-relative to the Greeks. I believe the Greeks are accepted for face value much too deeply by many option traders-and abused by the market makers who know the message the Greeks send. If you use the Greeks trading options, drop me an IM-and I'll share an easy but good technique with you.

Spooky, Thanks for the comment. Why do you think those calls were trading for ~7$ when VIX itself was at 38? Is it because nobody expects VIX to close at 38 by the OPEX?

Hey Dr. \Depending on the level and way that you have your bollingers stacked-you either blew the crap out of the standard 2 deviation-or using methods of measuring increased deviation from the 20 DMA-you could have broken the 2,3,and 4. Selecto is the man on these bolli's-I'm just a mere child playing by comparrison. But the main idea is this-as you blow out the standard deviations to the North, the mathematical odds of continuing in the same direction get smaller and smaller-and this is reflected in price and premium.