so once you score the FV of a vix future; what can you do with that? lol
note the "lol"
omg, my point is/was that you "clearly had no answer" (just as 99.9% of traders have no clue in vix stuff) and that was not picking on you. even messing in options without knowing the nuances you will get killed. i am just trying to save some of you guys some money, that's all.
I was being sarcastic. I got your point. Shuda included a "lol" myself hahaha
now if you were putting butterflies on in vix futures, say
long 1st month, short 2nd
short 2nd, long 3rd.
would you expect to be paying 4 separate nickle-wide spreads? if not, how would you go about putting this trade on to avoid 4 nickle spreads? what broker do you use?
I'm running some back tests and need to incorporate transaction costs. (clearly i haven't done much trading in this space, but no need to attack me about it, i understand how the products work)
I'd always do spreads, but I'm new to the VIX too, as you'll see if you go back a few pages. I'm still trying to see how to attack the thing also, and still also trying to figure out if it's even worth it. Sort of got sucked in by temptation.
Getting back, anything other than spreads would be suicidal, I would think. Also it would incur very large margin costs, since as you go between months you're actually going against different futures contracts, so it's not the same as a fly on SPY (I rhyme!), for instance.
The transaction costs are pretty much unavoidable. I use TOS, I think most here would use either them or IB.