Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.
onlyvix
-
Content Count
1 -
Joined
-
Last visited
Everything posted by onlyvix
-
Hello cuttshot! You can trade options and futures on the VIX, and options on VXX and VXZ, and I trade all of them. VXX is probably the easiest to get started - the ETF holds the front and second month VIX futures, and is most correlated with with index. Actual correlation depends on market regimes, but historically has been about 50%. One of the things you should keep in mind is that VXX was launched right around its theoretical peak value. Over the last year and half VXX has been trading it has lost about 3/4 of its starting value. However if you look at the underlying index -SPVXSTR, it would show that simply shorting the VXX can be quite risky. So to summarize - VIX derivatives are fascinating, VXX is probably the easiest to get started in, and know your risks before you trade! ~