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Re: kenl post# 46370

Sunday, 11/20/2011 3:46:36 PM

Sunday, November 20, 2011 3:46:36 PM

Post# of 51804
VIX December Call Spread

Interesting observation. Buying VIX 35 calls and selling VIX 55 calls will lock in a 20 point gain. Why not just buy VIX 35 calls and hope the VIX goes over 55? Because selling VIX 55 calls is used to offset the risk premium and possible loss on the VIX 35 calls.

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