calender in the vixy or vxx... sell an otm front month against same strike back month... puts are mispriced on spikes because of the fuzzyness of modeling contango risk into pricing... try it. skip the seminar.. limited risk strategy.. better then shorting the outright.. if your long the vixy or vxx your as stupid as i was 2500 dollars ago.. sold 3 puts at 32.. exited at 25...
by being long the vxx or vixy your basically saying and unknown unknown is going to come about and turn things backwards on the futures term structure..
VIXY - OCT 19 '12 + NOV 16 '12 17 Put Calendar Spread
priced at .60 cents or so right now... 60 bucks
