Transform the VIX into cash machine

Did You trade VX

  • No

    Votes: 20 42.6%

  • I will NEVER trade it!

    Votes: 6 12.8%

  • Sometimes

    Votes: 8 17.0%

  • I will trade it in few weeks

    Votes: 1 2.1%

  • I will trade it in few months

    Votes: 4 8.5%

  • Yes

    Votes: 6 12.8%

  • I trade that VX futures and nothing else

    Votes: 2 4.3%
  • Total voters
    47
Rescaling of VIX and VXD Futures Contracts

The rescaling will be effective March 26, 2007 and will apply to all VIX and VXD futures contracts. Specifically, the rescaling will apply to all then existing VIX and VXD futures contracts, including those contracts first listed for trading on or before March 26, 2007, and will also apply to all future VIX and VXD futures contracts that are first listed for trading after March 26, 2007.

CFE will rescale VIX and VXD futures contracts in two ways, as reflected in the example below. First, CFE will divide the VIX and VXD futures contracts by 10, thereby eliminating the Increased Value VIX (VBI) associated with VIX futures and the Increased Value VXD (DVB) associated with VXD futures. Instead of using VBI and DVB, CFE will base VIX and VXD futures contracts directly on the underlying index value. Second, CFE will increase the current multiplier for the VIX and VXD futures contracts from $100 to $1,000. As a result, the traded futures price will be reduced by a factor of ten and the minimum tick will be reduced from $0.10 to 0.01 index point, but the dollar value of both will remain the same.
 
Quote from Spectra:

It's that simple!
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An gry after having ass wiped over last week. Market wipe you ass somting terrible---you method suck wind--- BK is answer.
 
Trading Vix futures is a bit of a problem because there are not many platforms that are set up for execution. Tradestation offers a separate platform.

I love the vix cause I know when the vix is trending and through the use of gap data we also can predict where it will go in advance. There are other methods I use as well but I know the vix will return to 23.78. Just like I know that Trin will return to 2.51 and quite likely before the close on 8/3/2007

Here is 8/3 on vix gaps

vix is headed back to 23.78 on a gap fill
Open Long Gaps for $VIX.X
26.14 0.06
25.86 0.06
25.70 0.06
25.48 0.08
25.02 0.06
24.56 0.06
24.38 0.05
24.30 0.06
23.93 0.07
23.78 0.78 short term target
22.82 0.07
22.72 0.05
22.49 0.06
22.31 0.09
22.21 0.13
 
Quote from missLA:

An gry after having ass wiped over last week. Market wipe you ass somting terrible---you method suck wind--- BK is answer.
More...

Did You trade options on futures?
May it beter to trade VX future contract only at the bottom.. [near 12/13] with an huge account. (8/9000 by contract)

When VIX is higher I plan to use options, or vertical spread on futures. The problem is "Volume"!...
 

Attachments

I am a relative novice when it comes to the vix.. but anyone notice that its below 20 all of a sudden? Does the Vix normally crash after a heavily anticipated number or Fed Meeting?
 
Quote from sammybea:

I am a relative novice when it comes to the vix.. but anyone notice that its below 20 all of a sudden? Does the Vix normally crash after a heavily anticipated number or Fed Meeting?
More...

If the VIX is above 12/13, just make a vertical spread, to edge Your position, and nothing else!
 
Just enter the "long" trade when* the VIX is below 13.5 , ... in other case try (only) vertical spread - with futures options VX.
For me that seems surer in this way.

*like the VIX come back every time to his low price, be patient
 
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