The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. On today’s call, we’re going to talk about VXX and VIX options and how you should trade them. I’ll make this short and say we’ve done a podcast before on volatility options in these two, so if you want to understand the entire process and procedure for how they’re priced and how they work, you can definitely check out those other podcast. Head on over to optionalpha.com/podcast and just search in there. But the whole idea with these two is that they both are volatility type products that have options on them. It’s a pure way to trade volatility, most notably in the S&P 500. The VIX really tracks S&P 500 volatility. It’s a broad-based, broad market, a way to trade or play volatility. The best way in our opinion to trade VXX and VIX is to trade them bearish or to trade them once they’ve had a spike higher. What we typically would do just to lay out an easy framework or a process you can follow is that if implied volatility on the VIX spik