VIX – Bull Call Spread

There is a lot of debate currently about the low volatility levels & a potential pull back in the market.  Although I am not suggesting a short on the market, I believe the volatility levels might be due for a spike.  I like a play on the VIX … Feb 20/30 Bull Call Spread for a debit of 1.00 (when I looked at it). For a 10×10 vertical  …
Max loss = $1,000
Max Profit = $9,050 (VIX over 30)
BE point 21
It goes without saying that VIX levels can continue to remain low … it’s happened in the past.
Click here for P/L & Call IV graph.
This entry was posted in Bull Call Spread, Indices, Options, VIX. Bookmark the permalink.

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