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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: FiveFour who wrote (43447)	10/14/2005 12:33:06 AM
From: Win-Lose-Draw	Read Replies (1) \| Respond to of 110194

That's a very coherent (and accurate) explanation. The other thing worth keeping in mind is that shorting far-dated volatility is a form of russian roulette and it is not really logical to expect anything but significant contango from those willing to take that risk. I don't think we're likely to see significant volume on this contract. They ran something like this on Eurex a few years back and it died from lack of interest. Volatility is not an easy thing to trade when its nothing but pros and propellerheads on the other end of the trade.

To: FiveFour who wrote (43447)	10/14/2005 1:05:56 AM
From: mishedlo	Respond to of 110194

thanks Mish

To: FiveFour who wrote (43447)	10/14/2005 1:10:14 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Is that contract always looking 30 days ahead? At expiry is it an assessment of 30 days out or will it merge with the reported $VIX that everyone watches? Mish