Options traders bet on VIX futures volatility flooding the market

(Last Updated On: August 18, 2019)

This article become popular on my Facebook which you should read. The VIX futures is a popular pick! The title was:

Options traders bet on even more volatility flooding the market

I saw that the VIX was building faster than gold and Bitcoin a few days ago. The markets may have settled down in the last few days, but you cannot ignore this is the next big instrument to move up. Here are some article highlights:

“What happens is, when you see a lot of volatility the VIX curve actually ends up in backwardation. Spot VIX will end up even higher [than the futures],” Khouw said. “So, a bet that that future rises above 30 is a bet that something pretty wild is going on in the marketplace.”

Will VIX futures climb above 30? It’s tough to predict. However, with a few more days of wild swings in the market, they could move higher very quickly. The more likely scenario is that this trader is looking for the VIX to climb into the mid-20s over the next week of trading so they can sell these contracts at a profit.

The VIX was down Thursday, while VIX futures were slightly higher.

Do you trade futures? Is this one instrument you would be interested in trading ?

Thanks Bryan

P.S Don’t forget that my webinar tomorrow will cancelled tomorrow. It will resume next Monday Aug 26.

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs