Thursday, January 26, 2012

Very Odd Games on the Vix and IWM Put Value

I bought IWM puts, March 79, yesterday.

Then the market launched upward.   And by close the value of my puts were higher than when I bought them.    Massive changes in option value are being seen in the market.    For those holding option with stops, they are probably getting killed, stopped out.

Never seen it before, a massive indice move AGAINST the value of the put (in theory) and the value of the put goes up instead.

Hell, I'll take it, but there is something important here, more than just understanding your Greeks.    The wizard behind the curtain is important and he machinations are starting to show in these actions.


  1. It's probably because the VIX was up.

  2. These are very large and very unusual moves against the "logical" value of the put.   Very unusual is the point I am trying to make.

  3. Yeah, there's no doubt in mind my that illegal activity has exploded exponentially the last several years. I've gotten raped on calls before, only trade puts now, especially since a higher VIX builds in more premium, which makes it harder for the MMs to rape us retail peons.

  4. What is amazing is their ability to suck down the vix so quickly, just suck the value out of all options, and then WHAM volatility as people want to buy options to catch a move, suddenly they are paying a huge premium.   Methinks I am on to their shenanigans.

  5. totally weird, man. i can't remember something like this, but maybe i just wasn't paying attention at the time. then again, i never really understood all the nuances of the greeks, either. do they have a 'greeks for dummies' book out? ha ha ha

  6. Well at least I have never seen it work to my benefit!


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