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"Trading the VIX"

  1. Contango 41 Days 32% 64% This is the “normal”VIX term structure. It is upward sloping with successiveVIX futures selling for higher prices. This gives rise to theVIX futures “roll down” which hindersVXX
  2. 200%
  3. ChartsThanks toVIXCentral
  4. Backwardation The near futures are higher in price than the later dated futures
  5. 66% Jump in 1st month 28% Jump in 3rd month
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