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/biz/ - Business & Finance

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1197426 No.1197426 [Reply] [Original]

The VIX tracks the prices of options on the SP500 index. The VXX tracks the prices of futures of the VIX. Then there are options on the VXX. Basically, you got options on futures on options on index. How deep does this derivative market go?

>> No.1197430

>>1197426
I will report you just for posting this mongolian retard, go back to /pol/ faggot

>> No.1197436

who is the guy in the pic, I saw a video about germans and they posted his face https://www.youtube.com/watch?v=4ztOV2wrrkY

>> No.1197441

Seriously, guys. This whole thing's gotta blow up eventually right? We got people betting on people betting on people betting. That's madness.

>> No.1197579

>>1197441
no, that's called price discovery

>> No.1197677

>>1197441
>people price futures based on the expected value of stocks
>other people price stocks based on the value of futures
>feedback loop
>market is fucked

This circular jewery is what causes crashes

Stay away from derivatives lads

>> No.1197679

>>1197426
You can buy hurricane and tornado derivatives on CME

>> No.1197688

>>1197426
>>1197441
babbies first understanding of the current speculative shitstain that is modern finance
congratulations anon

>> No.1197699

>>1197677
people do not price stocks based on futures retard

>>1197426
the vix doesn't track option prices retard

>> No.1197701

>>1197699
They do price stocks in futures

Look at the news
"x futures are up"
Market rallies a few days later

Synthetic derivatives are fucked too

>> No.1197724

>the vix doesn't track option prices retard

http://www.cboe.com/micro/vix/vixintro.aspx
>The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices

Come on, son. It's not that hard to edumucate yourself.

>> No.1197732

ingrain these revelations into your inner pysche. the things that happen are so far beyond everyones vision of reality.

its terrifying and liberating at the same time if you have the 'tisms to see it.

>> No.1197736

>>1197436
Spede Pedersen I think is his name. A Finnish comedian from the 70s

>> No.1197737

>>1197441
>I don't understand it therefore it is bad
let me guess, you scream for gun control everytime someone gets shot and want to ban free speech so no one gets offended

>> No.1197902

>>1197441
fucking this >>1197737

Bernie pls go

>> No.1197921

>>1197701
a future is a derivative and they are priced based on the spot price. you have no idea what you are talking about.

>>1197724
the vix is an implied option volatility index. that isn't the same thing as "tracking option prices"