MikeL 9:35 am on Friday, January 24, 2020

VIX Puts Is there any…

VIX Puts

Is there any unusual risk in buying VIX puts?
Other than the potential loss of the premium paid.

Jeff 9:59 am on Friday, January 24, 2020

When buying puts there is never any risk beyond what you pay. However, if you allow ITM long equity or ETF puts to expire, you will wake up Monday with a short stock position, and THAT can have unlimited risk.

But $VIX options are cash settled, so if they expire ITM your account will be credited and the position closed.
- MikeL 10:44 am on Friday, January 24, 2020
  
  Thank you!

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