RE:RE:RE:Volatility Index Exactly!
it takes fear to raise the future VIX...not a bad morning/day. There really has been little fear since last October.
hvu rolls futures over on a daily basis at an even rate.
mdaffin wrote: Thats an easy one to answer. The HVU trades on the VIX futures - not the VIX in an absolute sense.
HVU is currently 4 % July and 96 % August future - or essentially all August.
Yesterday, August closed at 14.35. Currently, the future is 14.41 with HVU at 3.09-3.10 (yesterdays close was 3.08).
So, the August future is up 0.4 % so HVU should be 0.8 %. This indicates HVU should be trading at 3.10.
Now, should August future being trading higher with S&P down 0.5 %. Probably, but the FED thinks volatility can be a killer and it gets ratched down.
You really have to play this carefully (based on how much I have lost). I think there is a good chance of a correction greater than 10 % for the S&P. If that happens, we could see VIX and futures rise threefold. Meanwhile, you have the future hammered on by Wall Street/FED and the decay (as we get closer to closing the future, it will approach the value of the VIX). Right now, July is trading at 12.86.