I have been looking in to the spread between VIX and VXV for a time now. Does anyone do this and what type of strategies do you use to generate profit between these two indexes?
I assume there is money to be made with that type of trading, because it's very complex. Here are the issues you will have to address: -The short term VIX and the midterm VXV are likely to trade on different futures. -I don't see options on the VXV, do they exist? -You will need boths futures account and a PM account, and there is no cross margin What would you look to do as a sample position?
Thanks! I didnt even realize they dont have options on VXV. Good thing its only one of us that has the head up in the a**. Since I do not do this types of trades often I do not have a futures account and that would probably be the easiest way, I usually only create a synthetic position. Thanks for the input