Sell VIX put now?

[blackice]

Hi Kim/forum friends,

I have been wondering a simple strategy to long VIX, especially when VIX is low recently. I wonder is just selling VIX put (nearest expiration) a good idea? I know there is VIX future calendar strategy, but a simpler strategy is still good.

please educate what's the pros and cons for selling VIX PUT, thanks!

And also, since VIX is around 12 recently, is it good time to sell put now?

Edited December 16, 2016 by blackice

[Kim]

Take a look: Trading VIX

 

"Rather than just selling naked puts on VIX, when VIX is low, a calendar spread can be effective."

 

So you basically sell near term put and buy longer term put with same strike. Advantages:

 

1. Much less margin (at least with IB).

2. If VIX continues lower, your losses are reduced by gains of the long put.

[Turtle]

Good morning Kim

 

With VX futures close to a 3 year  low, any plans to enter a VIX calendar?

 

The Feb/March 15 and 16 Put Calendars can be had for a small credit

Edited December 20, 2016 by Turtle

[Kim]

We already have 2 trades that would benefit from volatility spike. Otherwise I would probably enter.