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.
you trade futures? Is this one instrument you would be interested in trading ?
P.S Don’t forget that my webinar tomorrow will cancelled tomorrow. It will resume next Monday Aug 26.FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!