Selling VIX futures easy money?

Discussion in 'Trading' started by kxvid, Oct 18, 2008.

  1. kxvid

    kxvid

    Volatility can't get much higher can it? Sell VIX futures long term do you think this is a good trade? Don't we all die if the VIX hits 100? :confused: :D
     
  2. Immortal

    Immortal

    bet the farm odds are good

    or do what I do, bet small position :cool:
     
  3. Easy money? Yes. For one side only though, either the buyer or seller. :cool:
     
  4. many have blown out shorting vix. unless ur stop is at 500
     
  5. Easy money is in the paradise (if you really need money there :D :D ) and nowhere in the world. Otherwise, everyone would have traded only VIX and nothing more.
     
  6. I was thinking about it so I think it can be a good trade. But yes, that thing can get over 100, not sure for the 500 though. So you want to have a LARGE stop. What I would do is not placing a stop but hedge the position with OTM put options (on ES or SPY, or calls on VIX if there are any) to make sure I am 100% hedged over 100. This would protect you in case there is a 20-25% drop on the S&P, which is not impossible IMO, not likely but you want to protect your capital.
     
  7. Yes. Easiest money in the trading world. Do not miss this opportunity to sell.