Cash Vix ETFs

Discussion in 'Options' started by tradingjournals, Nov 28, 2013.

  1. Not trying to be condescending.. or a jerk.. i'm just telling you from someone who knows the products, the curve, the index, and the options that underlay the entire deal, you will not find any product that doesn't have the inherent risks your talking about that "cost" you something to go long volatility..
     
    #41     Nov 29, 2013
  2. You should relax.. you should take a step back and realize this isn't about self righteousness.. we are only trying to help you..
     
    #42     Nov 29, 2013
  3. Maverick74

    Maverick74

    OK TJ, I'm going to throw you a bone since it's a holiday. What you want to do is go out further on the curve. There are other ETF's that get long different parts of the curve. There is still a roll. But.....the roll has less an effect on the curve. The downside to this, is that that part of the curve is less responsive to changes in vol. For example you can buy 90 vol or 180 day vol.

    Here is my gift to you for the holidays.

    [​IMG]
     
    #43     Nov 29, 2013
    .sigma likes this.
  4. dave_s

    dave_s

    A very nice chart of the family of products.

    thanks for your effort
     
    #44     Nov 29, 2013
  5. TskTsk

    TskTsk

    VIX ETFs are an investment in contango/backwardation, not cash VIX. It's impossible to invest in cash vix, else easy arbs would be all over the place
     
    #45     Nov 29, 2013
  6. To me there should be a premium between a strip of spx options and vix futures that represents the cost of neutrality in the strip of options and even then this cost is different to different parties and can't exactly be knowable due to rare events / large jumps... All that can be somewhat quantified but there isn't money just pouring out relative to vix in any fashion period
     
    #46     Nov 29, 2013
  7. FSU

    FSU

    I like your analogy.

    FSU
     
    #47     Nov 29, 2013
  8. Sell the front spread on the curve within 2-3 days after the previous contract expires. Time stop 10-14 calendar days. Avoid when vol is high and/or is trending down.

    As close to being long cash VIX as you are ever gonna get.
     
    #48     Nov 29, 2013
    FCXoptions likes this.


  9. +1
     
    #49     Nov 29, 2013
  10. NKVI>NH

    NKVI>NH

    thats some seriously free edge dude. i doubt the guy or any of these guys can margin even 1 spread or understand the concept u just framed. jeeze.
     
    #50     Nov 30, 2013