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Cboe Volatility Index (VIX) FuturesCboe Volatility Index (VIX) FuturesCboe Volatility Index (VIX) Futures

Cboe Volatility Index (VIX) Futures

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VX1! trade ideas

One of the Lowest Risk Trades Out There: VIX LongRegression channels are a very powerful tool for entry and exit points on assets. Unlike human-drawn lines and channels, they are not subject to biases and attempts to fit price behavior into questionable systems like Elliot's Wave. I decided to use /VX (Current Continuous) rather than spot VIX since /VX is actually what's used to settle your options on VIX (as VIX itself cannot trade, although /VX can as a futures contract). VIX also does not have volume data while /VX does. You can also purchase /VX directly or its smaller cousin (/VXM) for about $1200 per Contract. We've formed two touches on the bottom of the descending channel on bullish RSI divergence. The Money Flow Index also shows some kind of bullish divergence too (since /VX is a futures contract, volume-based indicators can be used). Regression channel theory likes to go long at the bottom of the channel and short at the top. I've done a few trades so far like this, and they've all gone somewhere. No trade is risk free, but unless you screw yourself with short-dated options, your odds of making money on this one have to be quite high. SPY is also hitting the top of its own well-formed regression channel, which fits this trade quite nicely.
CBOE:VX1!Long
by dtingbudong
6
When VIX index shows the volatility is predictableLet's go back a decade and observe how the VIX index played out the 2007-2008 financial crisis and the market's recovery. Previous to July 2007, the highest VIX value was $22.58 observed in June 2006 (minuscule compared to what comes next). Then the crisis happened, and VIX became extremely volatile and created a new support level at $16.7. There is various observation here that should be treated as lessons from the past. 1. The market does not magically become stable. It takes time to stabilize the market, attract long term investors and build faith in the success of businesses again. On 29/Dec/2008 week, the VIX went from $47 to $30 which was a $17 drop. It was immediately realized that the market is not ready for a quick recovery and the price increased back sharply to the $57 level ($27 increase). However, the steady, slow drop is not rejected as sharp as previous. A slow price decrease from Mar 2009 to April 2010 (over a year) rejected sharply only at the previous support level. 2. When the support level is shifted or levelled up, it takes time to recover the support level. The VIX went through multiple rejections during a span of 6.6 years to recover the support level. It takes a really long time to bring the support back to the old (stable) level after a market crash. 3. Every time VIX hits the support, you get a golden opportunity to play long VIX with little to no risk. Every time the market hits the support, it goes up again. With a higher margin and tight stop loss, you could have made large profits using VIX. 4. Finally, the quiet period comes after 2013. Stocks are good, the market is predictable and VIX volatility is low. 5. In 2020, we see another market crash, VIX increase to $80.8. This is even higher than the highest of 2007-2008 which was $69.4. At the moment of this analysis, VIX just tested $19.8 and currently selling at $20.08. Mind that the market crash wash only a year ago. I am not going to do the analysis on the 2020-2021 window but here are some questions for you. 1. Has the market recovered too soon? For the past year, VIX established the $21 as its new support level. Can the current bull run of US stocks make sure VIX support at $21 can be broken? Or are we at the edge of an explosive VIX movement? 2. With COVID still affecting the lives, can VIX go back to the good old $12.4 support level? I would say no. There is no chance VIX going past $15 and I sincerely doubt it will go past $18. You have a golden opportunity to buy VIX at an extremely bargain price. Both the risk/reward and probability are in favour of you. Forget Crypto, forget any hot stocks, forget gold. I can't advise you to buy VIX now but I strongly suggest that you should do your own research and consider adding the VIX index to your portfolio.
CBOE:VX1!Long
by titusj
VIX Futures Price Curve Vs. VIXSimple enough. The market is showing extreme divergence between Futures contracts priced for next month, and Futures contracts priced for Q4. This is the largest divergence seen within this Futures cycle. My theory is that it could be indicative of a bottom in VIX and the market pricing for more serious volatility events later in the year. Key: Bolder, lighter lines: Near-term Finer, darker lines: Longer-term This utilized VIX futures priced between next month and November.
CBOE:VXJ2021Long
by RogueEconomics
The Great(er) Vix Play (again)Hello :) It feels good to be back. For those of you who know/remember, I used to be a fairly active member on WSB as ScarvesandSuspenders. I left because i took alot of harassment for my trade ideas (whether they worked or didn't). Took a long hiatus to re-evaluate how i would like to interact with the trading community. In short, I am back (here)! Not returning to WSB (yet), but feel free to share my ideas if you so please. As always, this is not financial advice and simply my personal view on what i see in the market. This chart summarizes my current idea on VX futures and essentially the volatility market as a whole. When this will occur is all unknown but i believe at some point in 2021 is a fair assumption. I have begun accumulating my position and will continue to do so into the future. Wishing you all a lovely day and a brighter 2021 full of possibilities. Please stay safe and be careful. Till next time! S+S
CBOE:VX1!Long
by Throwthethrowaway11
2
VIX Really Forming A Definitive BaseVIX is now really forming a solid definiitive base. I was surprised to not see it climb as much yesterday due to the new events; however, I was reminded these types of reactions to such massive affairs sometimes take days or weeks to fully realize. Plus the institutional funds rolling in have prevented any type of predicted crashes…just delaying the inevitable. At any rate, VIX is forming higher lows and climbing steady. We might peak today, then cool off once more, and finally, take it into overdrive in 2-4 weeks’ time. Good luck trading all.
CBOE:VX1!
by FibonacciDiPisa
VIX Shall Return, and Return with FuryVIX is likely to peak out this week and retract next. After that, I would anticipate late January to early March to be some of the highest peaks it will see this year. It is not a coincidence this will come after about a year from the initial COVD crash. Unsure of how high, but I would start getting in on it later next week before inauguration time and/or early February. No matter what, the market will not like uncertainty, whether it is about COVID or a new president, and we will see some true VIX fireworks IMO. 1-7-21 (Peak) 24.1
CBOE:VX1!
by FibonacciDiPisa