Friday, October 10, 2014

Vix term structure is inverted

From vixcentral:

Vix term structure on the near end has become inverted, which means people are more scared of the present and near future than they are of the farther future.

And since XIV operates by rolling over futures on the first few months, you'll lose money every day if you hold XIV while this is happening, even if VIX calms down.

I play the short VIX position using HVI on the TSX, and Monday is a holiday here in Canada, so I can't play this right now anyway because short VIX is not a play you can just go on holiday from. It's a day-trader's move only.

Then Wednesday I'm going to be at a site visit for at least part of the day, with no computer, so I doubt I should play it then either.

So I'd be very happy if Wall Street Whitey can keep the fear and dread going til at least Thursday please. Hey, an intraday $VIX of 30 or 40 would really tickle my fancy - then I could short it like the fist of an angry god. Keep on barfin', guys!

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