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Trading VIX Options: Top 3 Things to Know | Volatility Trading

May 5, 2023
in Trade Tube
Reading Time: 1 min read
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💰 Get up to $3,000 when you open and fund your first tastytrade brokerage account:
🔥 Learn data-driven options strategies:

VIX options are some of the most actively traded options in the market, which means VIX Index options are something you need to understand.

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There are certain things you need to know before trading VIX options:

1. How VIX options are not priced to the VIX Index, but to the matching VIX future.

2. How VIX options settle to a Special Opening Quotation under the ticker VRO.

3. How long-term VIX options are much less sensitive to changes in the VIX Index than short-term VIX options.

==== FAVORITE OPTIONS TRADING BOOKS ====

How to Price & Trade Options:

Option Volatility and Pricing:

source

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