Best way to close a VIX M1:M2 spread next week?

Discussion in 'Financial Futures' started by dcwriter2, Oct 16, 2021.

  1. I'm long M1 and short M2, made some money What happens upon expiration to M1, closing cash into my account? Will the long then become a long M1? Caveats? Tips? New to the VIX futures.
  2. M1 will cash settle to the settlement price on expiration morning print. The. You will loose M1 exposure and have naked m2 exposure. You probably want to just trade the roll which is closing the exact position you have M1/M2.

    expirations can get wild and the spread could be very wild or M1 can print at an outrageously low or high price, so I would close before expiration
    FSU and dcwriter2 like this.
  3. destriero


    Dude, you're asking whether you should hold into settlement for the 0.85 remaining. Is there more than 0.85 in risk to Nov here? I would think so. The long Oct/Nov switch here is dumb. Obv it's cash-settled so are you really asking what happens at exp? You'll be long Nov outright.

    You probably shouldn't trade what you don't understand.
    taowave and Lou Friedman like this.
  4. Thanks for the post.