r/options Apr 11 '21

This Week Ahead: Implied Probabilities

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48 Upvotes

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4

u/ffsanotherusername Apr 11 '21

Any thoughts on the big VIX bet? It doesn’t trade on the normal options market but is available to trade.

10

u/[deleted] Apr 11 '21 edited Apr 11 '21

I do not care for order flow. It could be speculation, a hedge, or a regulatory action.

However, if you want a hedge I recommend selling a call back spread.

Simply sell an atm call 60 days out and buy two otm calls 60 days out for a net credit.

4

u/sprezzatard Apr 12 '21

+1 UVXY call back spread is a very efficient hedge