VIX Futures Explained - VITAL for Short Volatility Traders

[@VolatilityTradingStrategies]

Claim your FREE Trial to VTS: www.volatilitytradingstrategies.com/subscribe I answer all comments so ask me anything!

[@Buddylite04]

If you hold it for weeks. Do they just keep rolling or does it expire and are worth nothing

[@albertoweinrichter5441]

I wholeheartedly agree with you that understanding this is key to trade the volatility ETFs successfully, as this is what they track behind the curtain. But is it worth to try and trade the futures directly as well? Or you look at them more as information than a tool to profit yourself? Thanks for your content A VTS subscriber

[@VolatilityTradingStrategies]

I don't trade futures, just Options and ETFs. There's really no value added there for me, the Volatility ETFs are already managed well, and Options are just easier for people to understand so we stick with Options / ETFs only

[@fafillionaire]

I'm complete beginner when it comes to understanding VIX products. Yet I trade UVXY all the time 🤣 ... Buying UVXY puts are a no brainer especially when contango is north of 8%(IMO), and I occasionally buy the underlying and sell covered calls. Can't wait to dive into this course of yours. Anyway, right away you mention this example is with a clean term structure. My simpleton theory is whenever it is not clean, i.e. looking like an oscillating sine wave, it is time to buy UVXY. Last week being one of those times and I in fact own UXVY shares right now, although I sold 25 calls for 8/2 for over the weekend. Am I just getting lucky or does an ugly term structure preemptively signal a volatility spike?

[@VolatilityTradingStrategies]

Gotta be careful with UVXY Puts though because the Options market is efficient and everybody already knows they go down long-term. That is largely priced into the Options, so to succeed a trader needs a timing edge beyond just knowing about the long-term decay. The question isn't whether UVXY will go down. The question is, at what speed, and will it go down FASTER than the Options are already pricing in?

[@akash42766]

Vix term structure conditions which youve shown Backwardation it depends on regime change, it doesnt works all the time see in 2021 or before 2019

[@VolatilityTradingStrategies]

Sorry I'm not exactly sure what you mean by it doesn't work all the time. Can you be more specific?

[@ho2673]

Hey