VIX Term Structure | Volatility Trading Concept

The VIX term structure (VIX futures curve) indicates the difference between near-term and long-term implied volatility. LINK TO WRITTEN VERSION: https://www.projectoption.com/implied-volatility/vix-term-structure Understanding the VIX term structure is crucial for volatility traders because the shape of the VIX futures curve can be revealing about the performance of bullish or bearish volatility trades when the VIX futures curve remains in the same shape. In this video, you'll learn: 1. How VIX futures converge to the VIX Index as their settlement dates approach. 2. What happens to VIX futures and bullish volatility strategies when the VIX term structure is in contango. 3. What happens to VIX futures and bearish volatility strategies when the VIX term structure is in backwardation. Get an Extensive Options Trading Research Report Delivered to Your Inbox: https://www.projectoption.com/options-trading-research Subscribe to Our Newsletter! http://eepurl.com/ctvR6P Subscribe to Our Channel: https://www.youtube.com/channel/UCYOHtOzMZGwXBLZX1Ltf78g?sub_confirmation=1 Learn Options Trading Basics: https://www.projectoption.com/options-trading-basics Learn Options Trading Strategies: https://www.projectoption.com/options-trading-strategies Learn About Option Greeks: https://www.projectoption.com/option-greeks Learn About Implied Volatility: https://www.projectoption.com/implied-volatility

Comments

1. Why is it so common to see people staying "always short" on vix futures? What's the best hedge when shorting the vix futures?