Trading Options on the VIX

In my last article, we went over the basics for the Volatility index and how it is essentially an emotional barometer for investors to view the market sentiment. As you may have seen, I’ve returned pretty well on my personal option trades. There’s two different strategies that I go about trading on, and a third I personally haven’t tried, but can be used as a crash insurance. As for the two that I personally do, I will also show optional safety measures I take to cap my losses at the expense of unnecessarily major gains. To show I am worthy to speak on the subject, allow me to share every VIX option trade I’ve made:

Without further ado, let’s dive into the how for these trades.