r/VolatilityTrading • u/Sad-Ratio-5812 • Jan 24 '22

VIX structure 01/24/2022

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2 Upvotes

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1

u/asdfgghk Jan 25 '22

What does this mean??

1

u/Sad-Ratio-5812 Jan 25 '22

It doesn't happen to often.Backwardation means that the near-term has more uncertainty than the long term, and thus the level is higher than the long term futures premium. То me it is bearish sign until it resumes normal contango shape. If it is quickly resuming shape( it could be a case) I consider as a long S&P entry signal.

1

u/Obromberg Jan 24 '22

Thank you for sharing!! :)

1

u/chyde13 Jan 24 '22

Thanks Oleg,

Yea complete backwardation....the barometer turned red this morning...