For anyone who wants to trade vol products as a directional trade...the only way is future to future spreads if you want any chance to earn. There is no other way. Good luck.
would you like to see double inverse short term VIX?
- Thread starter PHOENIX TRADING
- Start date
Yeah I agree. The VIX switches.
I should not have said switches are better, they simply fit me better. They are simply calendar spreads. Many futures have multiple expiring months and they can trade at different rates vs the underlying. With a directional forecast you may be able to trade one against the other. It is not easier than any other type of trade, its just the one I have chosen for the past few years.
I agree that there should be a 2x inverse vix futures ETF. Until there is one, have you ever thought of going long calls on SVXY perhaps half way ITM to emulate 200% leverage? While there is a big spread, there isn't very much premium over intrinsic value on front month options for SVXY.
I don't mess with options, too many moving parts, not my cup of tea.
There is a 2x inverse VIX etp:
https://www.bloomberg.com/quote/X048:GR
I notice it doesn't seem to recover very well from the big spikes in volatility, like the 1x inverse does. It's clearly not to be held. Holding XIV and the other 1x inverse Vix products has worked thus far, but 2x is too much for these products to bear. If they can't be held, why bother, I have to wonder. There's leverage on the 1x, and there's futures, which are enormously favorable to ETPs from a taxation standpoint.
https://www.bloomberg.com/quote/X048:GR
I notice it doesn't seem to recover very well from the big spikes in volatility, like the 1x inverse does. It's clearly not to be held. Holding XIV and the other 1x inverse Vix products has worked thus far, but 2x is too much for these products to bear. If they can't be held, why bother, I have to wonder. There's leverage on the 1x, and there's futures, which are enormously favorable to ETPs from a taxation standpoint.
2017 still doesn't offer this
As I was saying, it exists in Germany. Trading, though, is very thin. I have traded it, but it's a little worrisome being the only person besides the market maker involved in this market.
In short few years tvix history, the biggest one day shorting lost was 97%, just last day open to another day open not even day high. That was not 2008 or 1987 kind of crisis at all. I dont think this kind of etf can exist.