If I am currently short the March futures and long a Vix call option expiring on Tuesday, how do I lose money, or should I say how many ways?
Maybe post the specifics because without VIX call strike/premium and price of future when you entered the contract, it is hard to say anything based on that vague sentence. There are always ways to lose money. If this is a real trade and you are asking then typical ET haha Nothing happens in teh market until Tuesday and then on Wednesday VIX spikes on global crisis and your account is wiped out faster than a mosquitos ass hitting the windshield at 70mph
i have exhausted alot of energy chasing after vix models for people and i think there isn't crap there. even though i have good models using the vix i say its crap because i can just trade the sp without using the vix and do better. so i gave up on vix.
I hedging with a long call expiring weekly that I think I bought at 14, and on Tuesday will replace with another ATM or close long call.
Actually, I went back and checked. It was the 17 strike (for 0.61). I guess I'm wondering if I need to hedge with 10 calls for one VIX short futures if it is a long-dated futures contract (March)?