SPY dividend capture

For the latest SPY ex-dividend information see this post on sixfigureinvesting.com

FAQ -- Why are the bid-ask spreads so wide on VIX options?

In addition to their sluggish tracking of the VIX index itself (VIX options below intrinsic value) the In-The-Money VIX options also tend to have relatively wide spreads (.5 or .6 is quite common). Equity option spreads tend to be more in the .1 to .05 range, with more liquid options dropping to only a .01 bid-ask spread.

I am not familiar with the ins and outs of option market making, but I suspect the wide spreads are due to the lack of a direct VIX investment / ability to short a direct VIX investment. The market makers are not speculators--they want to make a relatively small amount of money regardless of where the VIX moves and absent an inexpensive - low risk way to do that hedge they widen the spread to compensate.

You don't have to pay the ask/bid price. I have always been successful knocking at least .1 off the stated price, so if you can afford to be patient you can try splitting the ask/bid spread with your limit order and then if that doesn't work, cancel the order and offer a little more incentive to the buyer-seller.

Update VXX to VXI tracking

On June 3rd I posted on the apparent stable ratio of VIX to VXX -- .39 since about the beginning of April. This ratio appears to be holding. The chart below shows VIX/100, VXX/100, and VIX/VXX. The VIX/VXX (blue line) seems to be holding steady at an average of .39, the average for the last 30 days, and the last 60 days.

I divided the VXX (yellow) and VIX (purple) by 100 so they would scale in a range similar to th VIX/VXX. The intra-day tracking of the two is not as tight, the VXX tends to lag the VIX by a few minutes and the ratio varies between .365 and .41.

Below is just the VIX/VXX ratio with a 15 day simple moving average.

Things definitely settled down in April.