The chart below shows the changes in VIX futures term structures during the past week. As the market declines and volatility increases the front month is moving higher faster. The term structure moved from contango to slight backwardation in a couple of days.
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I decided to close these two poitions, see the table below. Both trades did well, the E-mini futures trade made about 46% profit and the VIX futures trade made about 71% profit.
The market nicely keeps moving up which favors these two futures trade. The table below shows the two positions at market close on Friday.
The table below shows how much the value of these two trades went up as the market moved higher. The profit more than doubled since my last post. The E-mini trade increased by 2.24 and the $VIX trade by 2.31, so they increased almost i indentical way..
The table below shows two futures trade. One on the E-mini S&P 500 and the other one on $VIX futures. Both of the contracts have March expiration date. So far there is a 15% and 25% profit in these trades. Could have been more with a better enty point. Futures are very liquid and can be traded almost all the time. Futures also have grate leverage. Unlike options, futures don't have time decay or they value won't change with the change in volatility.
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