
AD Derivs. Podcast (Ep. 4) - Mark Sebastian CIO @Karman Line Capital / @OptionPit
AD Derivs: Insights from Crypto Option Traders
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How Do You Trade VIX Options?
The most popular strategy is called the conversions trade. Traders will sell a near the money call and buy several out of the money calls because when the VIX moves, it probably trades more like crypto than just about anything else out there. The other thing I'll do, especially when vol is low, I'll trade strangles in the VIX a lot when playing for volatility to converge lower.
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