My VIX Futures Journal

Discussion in 'Journals' started by TheBigShort, Apr 23, 2019.

  1. I'm no mathematician but ....free lunches tend to be yesterday's trade
     
    #31     Apr 28, 2019
  2. Magic

    Magic

    Hey guys, do you have any feedback on my decision-making for the VIX contango trade suggested earlier? @rallymode , @sle ?

    I shorted May futures @ 28 days out & a little above 1.5 vs. spot. Closed this morning when it came down to touch spot levels. Hedge ratio seemed to lean a bit toward short vol, overall I was down just under 1pt on the futures.

    A possible refinement I was thinking of is establishing a more selective contango threshold than expiry or $0. So if we entered at (1.5 / 28 days = .054/day), maybe we exit earlier if we drop below .025/day. And slowly move the exit threshold up as we get closer to spot since we want more compensation as the risk goes up.

    Am I on the right track?
     
    #32     May 2, 2019