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Does Long straddle equal to long vega?

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Actually no you can't just go long VIX. On the outside it would seem that long VIX is the same but remember that more often than not the futures are in contango which means bullish VIX trades lose money as time passed and the VIX stays low. Overall I would highly suggest trading long vega in any situation. read more

Buying a straddle on the SPX is not the same as going long VIX for the simple reason that if the S&P rises, the VIX will fall. In this case, your VIX calls would lose money, but your SPX straddle could potentially gain money from the positive delta. read more

The long straddle consists of one long call and one long put. In this strategy, the potential loss is limited to the total cost of straddle plus commissions. However, potential profit is unlimited which makes this strategy attractive. This is because the risk is a lot and stock price can fall to zero. read more

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