TradingView
0
All posts from TradingView
TradingView in TradingView,

Inverted VIX Contract Strategy

Inverted VIX Contract Strategy

CBOE S&P 500 VIX CBOE:VIU2015

Anytime, when the front month contracts are expensive than the back month's. Any rally to the upside is to be taken with a grain of salt.

Because, Market is pricing in more risk on short term contract than the long terms. And risk in the general market knows only one direction, which is ________. assuming you know the answer. I will leave that blank.

Any rally during that time is a good place to sell Credit spreads on the market. You can backtest this.
I will release a code soon (working on it)

The rally high marks a good resistance point as well. So watch out before you get excited, trying to catch the bottom.

-
Good Luck Folks.