The Bid Ask spread of UVXY is much smaller than VIX future so day-trade UVXY instead of VIX future?

[Visaria]

imho, you will have to buy an option to protect yourself whatever you do

 

[El OchoCinco]

How do you control the short VIX future potential risk over nights? If something like 9/11 happens in weekend then there is nothing you can do about it and VIX future can raise like 300%, 500% or even more.

That is why I mentioned trading them outright is too risky and is basically a directional bet. Switches/Calendar spreads and even FLYS have better margin and can be modeled for less risk exposure to overnight BOOM or even normal vol spikes.

 

[Robert Morse]

If the purpose of this thread was day-trading, why are we worried about overnight and weekend risk?

 

[truetype]

Risk is risk. The next 9/11 could happen midday.