Question on the spread calandar vix.

[trader221]

Hello.
I need your help please for these 2 hypotheses. thank you

1) In which scenario should you sell the nearest contract and buy the furthest contract vix?

2) In which scenario should you buy the nearest contract and sell the furthest contract vix?

 

[Girija]

1. When Vix is in backwardation
2. when vix stays in contango
both can backfire to wipe the account. Not a good bet for a retail trader.

 

[brehantoir]

www.vixcentral.com is a good guide to show if monthly VIX Futures contracts are in contango or backwardation