VIX And VXV Show SPX Term Structure At Historic Highs
Vance Harwood | Aug 30, 2012 01:49AM ET
In addition to the well-known VIX index, the CBOE also publishes the above 0.90 it might not have any effects if the behavior during panicky times stay consistent with historical norms. As recently as the 2011 correction the VIX/VXV indicator worked very well for XVZ.
I’m certainly not convinced that medium-term VIX futures are driving this SPX option trend, but even if they are I don’t agree that this is an ominous distortion of the market. If lots of people decide they want to buy longer term corn futures contracts, the price will likely go up. Is that a distortion of the corn market?
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