I just posted in a another thread how Tudor Jones trades tops and bottoms... Its naively assumed that he goes all in from the get go,but he has stated that after the 10th attempt,he finally gets it right.. Like everything else in life,it takes a special skill set,and PTJ is sincerely an exception as opposed to the norm
Who cares? if you short it at 70 and you know it will revert back to at least 30 within a year or two, that is still a 50-100% return
Oh my bad was meant to take gurus comment but might as well show you, that you can trade the VIX via CFDs if you just go outside of the US juristiction. These are the Option I have trading via IG: bilder kostenlos downloaden fürs handy
The thing is, the vix product you are trading is not the cash price. If it was, many smart traders would have arbed the shit out of IG, causing IG to close the product. I was trying to figure out what the "cash" vix is that they have. Still not sure.
It has a lower bound at 14.5 but does not look to have a roll down affect like the front month future during contango.
It's not like those spikes occur on the regular. Also there are limitations on when you can trade certain things. If there is to much slippage or voaltility you might not get filled. I think I was lucky bc ppl thought the Economy was going to colapse and VIX was expected to go higher (i.e. VOX in the 80s was at 160). Also you have both sides of the Coin with CFDs and 80% of ppl loose money with them. So they get compensated more than enough, one reason why the ESMA regulated CFD Broker