The Bid Ask spread of UVXY is much smaller than VIX future so day-trade UVXY instead of VIX future?

Most retail traders lose, so tax treatment doesn't really matter. The VX futures tick is too big -- it should be .01. As it stands, VIX ETNs are tighter.

 

If you are a scalper or DT, why would a tighter spread and a contract with less meat be better? To make the same amount of money in a ETF/ETN, I have to trade a lot more. Also, if you are trying to buy on the bid and sell on the offer, the equity products trade on multiple exchanges, ECNs and dark pools. The future does all their volume in one place, the CFE.

 

Day trade them only on certain days, otherwise I have positions for weeks.

 

Short svxy for weeks? 10% annual interest is very expensive

 

Shorting futures has no cost of carry, unless your clearing firm charges extra. We don't.

 

How do you control the short VIX future potential risk over nights? If something like 9/11 happens in weekend then there is nothing you can do about it and VIX future can raise like 300%, 500% or even more.

 

I've been long a large position in svxy for some weeks now, might be a month. Up over 20% on it.

On a couple of days, I increased the position 5x purely as a day trade to take advantage of increased vol (I expected vol to decline).

 

1. Make sure your position isn't too big.
2. Buy otm options

 

So do the VXX and other derivatives of the VX Future. I'm not suggesting anyone choose to short these. I'm just saying if I choose to trade either the ETF/ETNs or the Future, I would choose the Future unless you want to take advantage of how bad these ETFs/ETNs are created. I can tell you that is a very crowded trade.

 

buying etf doesn't have unlimited risk, but short future/etf does, that is a big different.