So basically I wanted to understand the correlation between these two. I'm sure there are lots of subredditors which know more than me so in this case so you could possibly help me on this one.
I bought the Vix October contract at 12.4 and the current VIX sits at 9.5 (historical low). For my October contract I have a Take Profit set at 14. Does this mean that the real Vix (not the futures) need to gain 4.5 in the next following month in order for me to reach my TP? Or does the real Vix merely need to gain 1.6 points (12.4 + 1.6 =14) in order for me to the achieve the price level set at my Take Profit of 14 for my October contract?
I know I'm trading futures and not directly the VIX, my question was more in relation to the correlation between the rise of the VIX and the rise of the VIX futures. It would make a huge difference for me if the VIX rose by 4.5 points as well as my October contract futures (having it bought at 12.4 this would make me reach a 16.9 level), but I'm not really sure this is the case.
Hope I've been able to explain my query
Thanks for reading
Any input is more than welcome :)
Submitted September 24, 2017 at 07:47AM by Benzo_Head http://ift.tt/2hrAlPw
