Question on the spread calandar vix.

Discussion in 'Trading' started by trader221, Sep 6, 2020.

  1. Hello.
    I need your help please for these 2 hypotheses. thank you

    1) In which scenario should you sell the nearest contract and buy the furthest contract vix?

    2) In which scenario should you buy the nearest contract and sell the furthest contract vix?
     
  2. Girija

    Girija

    1. When Vix is in backwardation
    2. when vix stays in contango
    both can backfire to wipe the account. Not a good bet for a retail trader.
     
    trader221 likes this.
  3. www.vixcentral.com is a good guide to show if monthly VIX Futures contracts are in contango or backwardation
     
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