So as the VIX crosses 70, how about a look at some actual dollars you can now invest in options paper?
Been looking to buy puts in Ultra shorts as a way to know how much money I am going to throw away playing for a rally without using actual stops. So I checked out two of the more insane ones, EEV and FXP.
Well among other things, the markets are wide enough to drive and entire emerging country through, so it's pretty untradable anyway. But since I'm writing, I can look at hypothetical fills.
So, interested in an FXP straddle? Say, the Oct. 145's with one week to go? Midpoint to midpoint, it would cost about $42.
EEV Oct 180? About $49.
I remember trying this exercise in SKF at about this point in another cycle, and it was the same thing, unreal prices. And guess what, it was a buy, you got a play in both directions.
No way, no how I'm playing these either way, but for the record, I'll take the "over".
