Seeking Alpha
  • Erick Lee
    would anyone kindly explain contango/backwardation w/ $UVXY? i know it relates to near term futures and spot price of vix. much thanks!!
    6/20/13
    Reply (7)
    • Erick Lee: i also know that contango is usual and makes $UVXY drop average 1.5% per day, and backwardation is uncommon and makes $UVXY increase w/ time
      6/20/13
    • markrpat: best thing to do is go their website and download prospectus. 2nd best is to graph $VIX vs. $UVXY. Same applies with any xx ETF/ETNs.
      6/20/13
    • markrpat: Handy reading: http://bit.ly/Ry39UI
      6/20/13
    • Erick Lee: Much appreciated! I'm sure many of those interested in trading VIX based ETFs will have much to learn from your link.
      6/20/13
    • Erick Lee: found some old but excellent articles http://seekingalpha.com/a/g83t and http://seekingalpha.com/a/ghqh
      6/21/13
    • pollyserial: I think it's 1.5% a month, not day?
      6/21/13
    • pollyserial: or I guess with uvxy that would be 3+ per month
      6/21/13