VIX futures trading at a discount. is the bottom near?

Discussion in 'Trading' started by jgold310, Jul 2, 2008.

  1. jgold310


    The VIX closed @ 25.92

    july contracts $25.57

    august '' $24.97

    sept " $24.74

    oct " $24.55

    Does it mean the bottom is near?

    I was thinking about buying some july contracts as a hedge but this does not look very good. Should I buy aug?
  2. Wait for panic to call a bottom
  3. everyone is expecting the market to crash monday.........................

  4. The VIX is best used as a "panic" indicator... and that's relative to recent values. Currently 35-40 would be such a value. Until then, it means nothing.. IMV

    One other possibility... if it dropped back to the level of the May/June highs in the market... could play that as a "recent extreme".

    (A friend of mine charts the VIX.... trendlines, channels, triangles, etc. I think he's daft. :D )
  5. S2007S


    Everyone is saying the VIX needs to be somewhere near 35+ to signal somewhat of a bottom, Im surprised its not even near 30 at this point, I think this time the VIX may not need to see 35+ to signal a short term bottom.
  6. S2007S


    I really think the markets are ready for a 10-15% ONE day drop.

    I think the market is going sub 11k sometime in the next week followed by a dramatic drop below 10k where I think a bottom will be made.
  7. the only thing that makes bottoms is 'time', and not price...

  8. yes , VIX never lies...I suggest an "all in" trade
    Free $$$
  9. the suprise this time will be the vix will go to 75-100 killing the buyers stock at vix 30-35
  10. S2007S


    Dennis Neal on cnbc just said BUY BUY BUY, dont worry he said the same thing when the dow was above 13k...

    :p :p :p :p :p

    guy is a joke......
    #10     Jul 2, 2008