Is it possible and if so how replicate a long or short volatility view using futures/cash instruments instead of options? If so, how?
I thought so...but was hoping I was wrong...how sad/ How about a pesudo-replication i.e. not exact but will still have similar risk/reward to a long vol/short vol options position?
No, not really. In some carry markets[grains,softs] you can trade to large backwardations/contangos, but that's an oscillator or convergence trade and would entail a futures time spread or a classic discount/premium arb. It's not decay, per se.
So options it is. I wish futures options were more liquid and traded electronically. As it stands now you can't trade S&P options overnight despite the fact that we have some good gap moves overnight? Why can't globex make trading of electronic combo/spreads easy/straightforward and have A DPM to trade overnight like they do in the globex currencies??