➥ Hypergrowth Options Strategy Course:
The VIX term structure (VIX futures curve) indicates the difference between near-term and long-term implied volatility.
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.
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