VIX-Trading. What is the best way to make money?

Artes,
Alright, so you are talking about trading the VIX Futures contract, not trading options on it. Do you have access to good quotes and charts on the Futures? If you don't then you should not trade it, if so do a careful comparison to how the Futures trade differently than the simple VIX index. Notice that the VIX can be at 12 and then go to 13, but depending on which VIX Futures contract you have it may only move a few cents. So a big move in the VIX may only result in a very small move in the Futures.
 
04/24/07 $-83.35
04/27/07 -71.75
05/02/07 -44.62

Thats a decay of 37.5% compared to 04/27.

Margin required at my broker is about $400.
For $-4,464 I would need a $40,000 margin and if taking factor 2 I would need a $80,000 bankroll.

Vix at 13.08
VIXK07 at 13.16

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=vix&sid=0&o_symb=vix&x=61&y=17

June 12 puts are at BID 0.45
June 13 puts are at BID 1.00

http://bigcharts.marketwatch.com/qu...b=vix&sid=1704273&time=8&bars=1&bars=2&bars=3

I am thinking when to roll over to June contracts.
Strike 12 or 13. I have no good VIX forecast at the moment.

At the money puts have a value of about 0.70 for 12 days to go (05/15).
 
VIX, VX future contract (May-07)

There is a chart from igindex.co.uk (account needed)
there is possible to sell it every time 15/20 ticks higher.
May be every day or every two days...
When is bought at the bottom, average bottom price...

4 times in ten years moves about 7000 ticks
1 or 2 times by month may be move about 300/400 ticks

What do You think?
 

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Quote from artes:

VIX, VX future contract (May-07)

There is a chart from igindex.co.uk (account needed)
there is possible to sell it every time 15/20 ticks higher.
May be every day or every two days...
When is bought at the bottom, average bottom price...

4 times in ten years moves about 7000 ticks
1 or 2 times by month may be move about 300/400 ticks

What do You think?
More...

Equivilent to buying the dips in ES.

Problem is when do you sell vol? if you can equate it with price level nicely and get a good feel, then good. But you might as well buy ES. (or sell ES puts)

When it blows up against you you'll have a better feeling on ES than VIX.
 
Bought the 2 puts back on friday.

VIX MAY07 12 P (100) 2007-05-04, 13:50:19 CBOE 1 0.1500 -15.00 -1.00
VIX MAY07 12 P (100) 2007-05-04, 13:50:19 CBOE 1 0.1500 -15.00 -1.00
Total -30.00 -2.00

05/04/07 -32.00

Next is to write new puts for June.
 
04/24/07 -83.35
05/04/07 -32.00

Profit 51.25
Margin 500

%Profit is 10.25% from 04/24 - 05/04 (10 calendar days)
 
With 8 days to go the put 12 in May is still good.
I did sell too early.

See attached spreadsheet.

I will go for the put with the strike 13 in June next.
 

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