VIX Trading

Rafael

New member
Hello, I am new to trading options. To hedge my stock portfolio, I would like to make a call on the VIX. When I make a call with strike 20 and duration 01/2023. Can I sell it at any time? So if the underlying is 30 in June 2022, can I close the option? See Calculator

Thank you for your help
 
Short answer - yes, you can sell it any time during normal trading hours.
The long answer - I would recommend to play with small amounts of capital for the start.
VIX options are not the same as options for traditional stocks.
VIX options are priced after VX futures for given expiration and VX futures will not move the same way as VIX itself.
You can see the shape of different VX futures there for example:

Longer term VX futures will move much slower than VIX spot. It means that even VIX in Jun 2022 may get to 30, the VX futures 01/23 may get only to 25-27 range.
 
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