The Volatility Index (VIX) Explained

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Comments

1. Yes you get cash back if you make money of course :). I would only play vol with VXX and VIX. Everything is game strategy wise except for calendars.
2. Yeah, I understand you get cash and that the VIX is just a statistic. Do you just get your original cash back? What would be an appropriate way to trade volatility ETFs/ETNs? Today the UVXY dropped 22%, while the XIV gained 10%. That kind of gains everyday seems very profitable. Do you have any type of system that you recommend?
3. Cash - you don't get the VIX shares or anything like that.
4. What happens if the VIX futures expire? What do you get upon expiration? It's cash settled but what do you get..
5. Because it's an annualized figure that I breakdown monthly
6. What made you divide by 12?
7. Good presentation. One question. From the CBOE white paper: "When the near-term options have less than a week to expiration, VIX rolls to the second and third SPX contract months." Is the "10 days" in your presentation a typo or am I missing something?