How to Play a Low VIX
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The Feb VIX future has $2.55 of premium in it to VIX cash. Considering that future will expire before the debt talks swing into action it is a little rich. Even if the VIX cash is fairly priced (which I think it is for right now, albeit a touch high) future premium will erode. That is a perfect VXX time spread using puts. If you think VIX cash will launch between now and Feb expiration this is not the trade for you.
Trades: Buy to open 3 VXX Jan/Feb 26 put spreads for $1.10, or better.
I am looking for about $0.40 on the time spread, and if things go well you can sell the VXX Feb Weeklys against the position and Jan expiration.
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