VIX ETF/Futures/Options Discussion Thread

Discussion in 'Options' started by mahras2, Jan 13, 2012.

  1. sle

    sle

    not sure if that's true. do you mean fixed delta skew (e.g. ATM - 25d put) or fixed moneyness (e.g. 100%-90%)?
     
    #71     Feb 13, 2012
  2. what I have observed and what I am trying to say is that the negative relationship b/w VIX (in points or in %) and SPX (in % or points) is not linear. it is convex instead.

    The VIX definition effectively has both vol level and vol skew components. My thought was the skew got to get larger to cause the convexity, especially if the skew is not normalized by ATM vol. However I have no mathematical proof for this.
     
    #72     Feb 13, 2012
  3. garachen

    garachen

    Was looking through the TVIX prospectus today because of the whole stop issuing new shares thing.

    "The long term expected value of TVIX is 0."

    Wow, they are honest!
     
    #73     Feb 22, 2012
  4. mahras2

    mahras2

    They should be as they likely need to be. Insane how many shares of the ETNs have been created.

    That recent XIV pullback was an awesome entry point. Even start of day today was a good entry point with march 19% above spot and april 13% above march.

    Ridiculously steep curve with a decent margin of safety for spot vix to spike by march settlement.
     
    #74     Feb 23, 2012
  5. sle

    sle

    I hope you were not short TVIX :) I think this insanity still has ways to go but once it's over, it will be an awesome short.
     
    #75     Feb 25, 2012
  6. Record contango on the VIX curve. 10 handles between 90 day futures and spot.
     
    #76     Mar 13, 2012
  7. Yeah, was just noticing. Not long ago it was 1000bp out to a year.
     
    #77     Mar 13, 2012
  8. So you're saying that I shouldn't have shorted the May/Jun cal spread @ 1.20?

    Crap!!
     
    #78     Mar 13, 2012
  9. I'm fading it.
     
    #79     Mar 13, 2012
  10. I think the ETP hedging might help to steepen the curve.
     
    #80     Mar 13, 2012