How to trade volatility

Discussion in 'Trading' started by prisma, Jan 13, 2011.

  1. prisma



    I'd like to trade pur volatility, e.g. the VIX-index in time-frames (trade-open to trade-close) of 1 to 10 days.

    Which instruments would you recommend to do so?

    I've looked at CFE-futures but they seem not to follow the index alone because on some days the index is up while the future is down an v.v.

    I've looked at CBOE-options but options at the money have a high relative spread (bid-ask) of up to 10% (e.g. 5ct spread with 50ct option price).